Section 75(4) of the CGST Act, 2017—Personal Hearing —-The petitioner’s counsel submitted that SCN was issued on 30.11.2019, wherein a date was fixed for filing reply but no date for PH was fixed. The petitioner did not file a reply on account of Covid situation and on account of the accountant being unwell. The respondent passed an order on 01.10.2020 under Section 74. The appeal was also rejected for want of deposit. The court observed that no interference is called for as the appeal is a creature of statute which can prescribe conditions for availing the said statutory remedy. The petitioner having not complied with the condition for availing statutory remedy of appeal, no fault can be found with the order. But the proceedings were initiated under Section 74, the manner of decision making is specified under Sub-Section (4) of Section 75 of the Act, which specifically provides that an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax for penalty or where an adverse decision is contemplated against such person. The order dated 01.10.2020 does not reveal that any personal hearing was accorded to the petitioner prior to passing of the order.

Held that:- The Hon’ble High Court set aside the order dated 01.10.2020. The respondents shall be at liberty to conclude the proceedings in accordance with law afresh, if so advised.