Case Law Details
Shree Sai Palace Vs State Of U.P. And Others (Allahabad High Court)
In the case of Shree Sai Palace vs State Of U.P. And Others heard in the Allahabad High Court, the petitioner challenged an order passed by the Additional Commissioner, Grade – 2, (Appeals – 2nd), Commercial Tax, Jhansi, dated December 16, 2022. The petitioner, who owned a hotel and was registered under the Goods and Services Tax Act, 2017 (UPGST Act), received a notice under section 74 of the UPGST Act for the period December 2017.
The petitioner did not file a reply to the notice, and subsequently, an order was passed under section 74(9) of the UPGST Act on July 7, 2021, without affording the petitioner an opportunity for a personal hearing. The order was challenged on the grounds that it violated the principles of natural justice as no date, time, and venue for personal hearing were fixed.
The court emphasized the importance of providing an opportunity for personal hearing as mandated under Section 75(4) of the UPGST Act. It highlighted that the use of the disjunctive conjunction “or” in the statute indicates two distinct scenarios where personal hearing must be granted: upon request from the person chargeable with tax or penalty, or when any adverse decision is contemplated against such person.
The court cited previous rulings and held that even if no request is received from the person chargeable with tax or penalty, an opportunity of personal hearing must be granted if any adverse decision is contemplated. It emphasized that personal hearing represents a fundamental aspect of procedural fairness and natural justice, ensuring that individuals have the opportunity to present their case before any final determination is made.
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