GST demand quashed by High Court as notice fails to provide date and time for personal hearing.

Petitioner:

A notice under Section 73(5) of the Act, 2017 dated 11.12.2020 was issued to the petitioner on the ground that there is some mismatch between FORM GSTR-7 and GSTR-3B for the financial year 2018-19. The notice had been uploaded in the category of “Additional Notice and Orders” in the GST portal. 

Learned Advocate for the petitioner submits that neither any show cause notice as contemplated under Section 73 was served upon the petitioner nor any opportunity of hearing was afforded to the petitioner as contemplated under Section 75 (4) of the Act, before taking the impugned adverse decision.

He, therefore, submits that the impugned assessment order was passed in breach of provisions of Section 73 and Section 75(4) of the Act, 2017 and also in breach of principles of natural justice. 

Revenue:

Learned Advocate for the respondents submits that the notice under Section 73 of the Act, 2017 was issued to the petitioner but he chosen not to submit any reply and as such the proper officer has not committed any error of law to create to pass the impugned order under Section 73 of the Act 2017.

He further submits that against the order under Section 73 of the Act, the assessee was having remedy of statutory appeal under Section 107 of the Act 2017 but without exhausting that remedy the writ petitioner had filed the writ petition and after being unsuccessful, he has filed he present appeal. Therefore, the appeal deserves to be dismissed on the ground of alternative remedy.

High Court:

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Show Cause Notice

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Principle of Natural Justice

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