Case Law Details
Julie Jose Vs State Tax officer (Kerala High Court)
Introduction: In the case of Julie Jose vs. State Tax Officer, the Kerala High Court examined an assessment order issued under the provisions of the CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) Acts. The petitioner challenged Exhibit P-4, alleging a violation of the right to a personal hearing, as mandated under Section 75 of the GST Act. This article provides a detailed analysis of the case, focusing on the absence of personal hearing and the court’s decision.
Assessment Order Under Scrutiny: The petitioner, a taxpayer subject to the CGST and SGST provisions, filed a writ petition challenging Exhibit P-4, an assessment order issued under Section 73 of the Kerala GST Act. The sole ground for this challenge was the petitioner’s claim that they were not granted a personal hearing, a requirement specified under Section 75 of the GST Act.
Legal Mandate for Personal Hearing: Sub-Section (4) of Section 75 of the GST Act outlines the necessity of affording an opportunity for a personal hearing. It stipulates that such an opportunity must be granted when a written request for it is received from the person liable for tax or penalties, or when an adverse decision is being contemplated against that person.
Petitioner’s Request for Personal Hearing: The petitioner in this case explicitly requested a personal hearing in response to the matters arising from the impugned order. Despite this request, the assessment was completed under Section 73 of the Kerala GST Act without affording the petitioner the opportunity for a personal hearing.
Court’s Verdict and Remand: Considering the provision mentioned in Sub-Section (4) of Section 75 of the GST Act and the factual circumstances, the Kerala High Court found a clear violation. Therefore, the court set aside the impugned order and remitted the matter to the first respondent (the tax officer) for the issuance of a fresh assessment order, with the mandatory inclusion of a personal hearing for the petitioner.
Conclusion: The case of Julie Jose vs. State Tax Officer underscores the significance of adhering to statutory provisions, particularly the right to a personal hearing, as laid out in the GST Act. The Kerala High Court’s decision to invalidate the assessment order due to the absence of personal hearing reaffirms the importance of procedural fairness and the protection of taxpayers’ rights. The petitioner is now directed to appear before the tax officer to address the Show Cause Notice, with the assurance that no further notice of hearing will be issued.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. Heard Mr. Harisankar V. Menon, Learned Counsel for the petitioner and Ms. Jasmine M. M., Learned Government Pleader for the respondents.
2. The present writ petition has been filed by the petitioner, who is the assessee under the provisions of the CGST and SGST challenging Exhibit P-4 assessment order made under Section 73 of the Kerala GST Act. The only ground which has urged in this writ petition is that the petitioner is not afforded with an opportunity of hearing as mandated under Section 75 of the GST Act. The Learned Government Pleader fairly has not disputed the said contention of the Learned Counsel for the petitioner. Sub-Section (4) of Section 75 of the GST Act provides as under.
“(4). An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”
3. The petitioner has requested for a personal hearing in the matter resulted from the impugned order itself. Despite the contention which is made by the petitioner for personal hearing, the assessment has been completed under Section 73 of the Kearla GST Act without affording an opportunity of personal hearing.
4. Considering the aforesaid provision and facts, I find there has been violation of Sub Section 4 of Section 75 of the GST Act and, therefore, the impugned order is hereby set aside and the matter is remitted back to the file of the 1 st respondent for passing fresh assessment order after affording an opportunity of personal hearing to the petitioner. The petitioner is directed to appear before the 1st respondent on 20.09.2023 and make his submission with respect to the Show Cause Notice issued to him for finalization of the assessment order. It is made clear that no notice of hearing shall be given to the petitioner.
With the aforesaid directions the writ petition is allowed and the impugned order is set aside without cost.
