Assessee To Be Heard Even If No Reply To Notice In DRC-01 Is Filed – One Liner Cryptic Order Rejecting The Explanation Given By The Assessee Not Sustainable 

Facts: The Petitioner filed the writ petition before the Hon’ble High Court challenging the impugned order dated 24.06.2022, mainly on the ground of violation of principles of natural justice.

Held: –

• The Hon’ble Court after considering the submissions made and facts of the case, observed that in the instant matter the impugned order is dated 24.06.2022 and the present Writ petition has been filed beyond the statutory period of limitation for filing appeal. However, there is no serious objection raised on the behalf of the respondents to the maintainability of the Writ Petition.
• It was found by the Hon’ble Court that main ground argued on the behalf of the petitioner is the violation of principles of natural justice. Further the pre-assessment notice in DRC-01 was issued on 25.05.2022, though, the order has been passed on the basis of petitioner’s reply filed to the verification of petitioner’s return in Form ASMT – 10 on 08.02.2022.
• The Hon’ble from the perusal of above facts, held that it is incumbent upon the Authority under Section 74 of the Goods and Service Tax, Act, 2017 to hear the petitioner in person, before passing any order.  Apart, the impugned order rejects the explanation given by the petitioner on 08.02.2022 by way of cryptic one liner stating that ‘dealer reply was verified and not accepted so far.’
• Further, it was found by the Hon’ble Court that there is no doubt that the confirmation of proposals in the aforesaid manner cannot sustain and is liable to be set aside.

The Hon’ble High Court with the above findings, allowed the Writ petition with the directions to the respondent authority to issue fresh notice and after hearing the petitioner pass order in accordance with law.

To read the complete judgment 2022 Taxo.online 1189