Without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner, straight away issued summary order is violative of the principles of natural justice.
Section 74 of the CGST Act, 2017- Principle of Natural Justice-- Personal Hearing ----- The petitioner challenged the order dated 21.09.2020 vide Form GST DRC-07 by exercising power under Section 74(1) of the Act, 2017. The petitioner is a works contractor executing civil contract works for Nellore Municipal Corporation. The 2nd respondent issued notice dated 23.01.2020 under Section 74(1) for the period April, 2018 – March, 2019 claiming an amount of Rs. 15,69,002/- towards estimated tax payable with 6% interest basing on the data provided by the Comprehensive Financial Management System (CFMS) alleging that the payments received by the petitioner from the 3rd respondent were not tallying with the turnover reported through GST returns. The petitioner submitted his explanation dated 20.02.2020, however, the 2nd respondent, without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner, issued summary order dated 21.09.2020 which is violative of the principles of natural justice. The court observed that an opportunity should be accorded to the petitioner to present his case before the 2nd respondent.
Held that:- The Hon’ble High Court allowed the writ Petition by setting aside the impugned order dated 21.09.2020, with a direction that the 2nd respondent shall issue notice to the petitioner and afford an opportunity to him to present the relevant information in support of his contention, and consider the same and pass an appropriate order afresh in accordance with the governing law and rules.
Without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner, straight away issued summary order is violative of the principles of natural justice.
Section 74 of the CGST Act, 2017- Principle of Natural Justice-- Personal Hearing ----- The petitioner challenged the order dated 21.09.2020 vide Form GST DRC-07 by exercising power under Section 74(1) of the Act, 2017. The petitioner is a works contractor executing civil contract works for Nellore Municipal Corporation. The 2nd respondent issued notice dated 23.01.2020 under Section 74(1) for the period April, 2018 – March, 2019 claiming an amount of Rs. 15,69,002/- towards estimated tax payable with 6% interest basing on the data provided by the Comprehensive Financial Management System (CFMS) alleging that the payments received by the petitioner from the 3rd respondent were not tallying with the turnover reported through GST returns. The petitioner submitted his explanation dated 20.02.2020, however, the 2nd respondent, without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner, issued summary order dated 21.09.2020 which is violative of the principles of natural justice. The court observed that an opportunity should be accorded to the petitioner to present his case before the 2nd respondent.
Held that:- The Hon’ble High Court allowed the writ Petition by setting aside the impugned order dated 21.09.2020, with a direction that the 2nd respondent shall issue notice to the petitioner and afford an opportunity to him to present the relevant information in support of his contention, and consider the same and pass an appropriate order afresh in accordance with the governing law and rules.