Without a personal hearing, which is required before passing any adverse order against an assessee, the HC setaside order was passed

Union of India v. Ultratech Cement Ltd. – [2023]

The petitioner filed a writ petition contesting the adjudication ruling, alleging that no personal hearing was provided before the order was made. Moreover, it was argued that the petitioner was entitled to an opportunity to be heard because the impugned order was a judgement that went against them.

According to Section 75(4) of the CGST Act, 2017, a personal hearing must be held before any adverse verdict may be rendered against the assessee, the Honorable High Court stated. In this instance, the petitioner’s reply was denied since it was deemed unacceptable and no tax had been paid by the petitioner, which was the only justification given in the contested decision.

The Court observed that these were appalling instances of mindlessness and a flagrant disregard for natural justice norms. As a result, it was decided that the order might be overturned, and the case was remanded to an Assessing Officer other than the one who had made the original decision.