FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

In all these writ petitions, orders in original and the subsequent rectification orders are assailed on the ground that the petitioner was not provided a personal hearing.

2. The petitioner is engaged in the business of executing civil work contracts. Pursuant to an inspection of the petitioner’s premises, show cause notice dated 07.07.2023 was issued to the petitioner. Such show cause notice was replied to on 07.08.2023 and 28.08.2023. Orders in original were issued on 19.09.2023. The petitioner filed rectification petitions in respect thereof and such rectification petitions were rejected by orders dated 24.04.2024.

3. Learned counsel for the petitioner submits that the petitioner contended in the reply to the show cause notice that the ingredients of Section 74 were not satisfied. He further submits that the said reply was not into consideration and that no findings were recorded on the petitioner’s contentions. In addition, he submits that no personal hearing was granted thereby violating sub-section (4) of Section 75 of applicable GST enactments.

4. T. N. C. Kaushik, learned Additional Government Pleader, accepts notice for the respondent. He points out that a personal hearing was granted when the rectification petitions were disposed of. He also points out that the petitioner did not request for a personal hearing and that the petitioner checked the box for no personal hearing.

5. Under sub-section (4) of Section 75 of applicable GST enactments, a personal hearing is mandatory not only when requested for but when an order adverse to the tax payer is proposed to be issued. In all these cases, the tax proposals were confirmed without the petitioner being provided a personal hearing. On account of the infraction of a mandatory prescription, orders impugned herein cannot be sustained.

6. Therefore, impugned orders in original dated 19.09.2023 are set and these matters are remanded for reconsideration. The respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue fresh orders within three months from the date of receipt of a copy of this order.

7. These writ petitions are disposed of on the above terms without any order as to costs. Consequently, connected miscellaneous petitions are closed.