Under Section 75(4) of GST Act, opportunity of personal hearing must even if not asked

In terms of Section 75(4) of GST Act, 2017 it is incumbent to grant an opportunity of personal hearing even if the same is not asked for. 

In a recent judgment, Hon’ble Allahabad High Court has reiterated that in terms of the mandate of Section 75(4) of GST Act, it is incumbent to grant an opportunity of personal hearing even if the same is not asked for.

ABCAUS Case Law Citation:
4555 (2025) (05) abcaus.in HC

In the instant case, the assessee Petitioner had challenged the order passed under Section 73 of GST Act as well as the order passed by the appellate authority whereby the appeal of the petitioner was dismissed.

The petitioner was served with a show cause notice. In reply, the petitioner had sought for personal hearing, however, without granting the personal hearing, the order came to be passed under Section 73 of GST Act.

Aggrieved against the said order, the petitioner preferred an appeal. The appellate order stated that on three occasions, counsel for the appellant had appeared, however, thereafter, he did not appear despite several dates being fixed, as such, the appeal was decided holding that the assessee had failed to produce any evidence either before the adjudicating authority or before the appellant authority and also did not appear before the appellate authority, as such, the order required no interference.

Before the Hon’ble High Court, the assessee submitted that despite seeking an opportunity of hearing, the petitioner was not granted the haring which is contrary to the mandate of Section 75(4) of GST Act. He placed reliance on the Division Bench judgment of the High Court.

With regard to the appellate order, it was argued that even if the appellant had not appeared, it was incumbent upon the appellate authority to have decided the appeal on merits in terms of the mandate of Section 107(12) of the GST Act, which has not been done.

The Hon’ble High Court observed that the Division Bench of the Court had held that action of the officer of the State GST in denying opportunity of personal hearing in the show cause notice by indicating ‘NA’ in the column pertaining to date of personal hearing, despite specific prayer made for providing opportunity of hearing amounted to passing of the impugned order without affording any opportunity of hearing.

The Hon’ble High Court observed that in terms of the mandate of Section 75(4) of GST Act, it is incumbent to grant an opportunity of hearing even if the same is not asked for, as such, the order under Section 73 of GST Act is in violation of principles of natural justice as well as against the mandate of Section 75(4) of GST Act.

The Hon’ble High Court further noted that the impugned appellate order, although, recorded the submission made in the memo of appeal, however, did not deal the same on merits and recorded that the appellant had failed to adduce any evidence. The said manner of adjudication cannot be termed as justified in view of the mandate of Section 107(12) of GST Act. Thus, finding the impugned orders to be short of requirements of the mandatory provisions, the same cannot be sustained.

Accordingly, the impugned orders were quashed and the matter was remanded to the assessing authority to pass fresh order in accordance with law after affording an opportunity of hearing.

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