Since no opportunity of personal hearing was given to the writ applicant by the concerned authority before passing the recovery order, The high court is of the view that we should give one opportunity to the writ applicant to appear before the respondent and make good his case
Section 75 of the CGST Act, 2017— Determination of Tax —–Principle of Natural Justice— The applicant challenged the order dated 21st October, 2020, by which, the liability of the writ applicant to pay a particular amount towards service tax with penalty came to be fixed. The applicant submitted that no opportunity of personal hearing was given to him by the authority before passing the order. The respondent counsel submitted that ample opportunities were given to the applicant however, those opportunities were not availed by the applicant. The court in order dated 28th January, 2021 has asked the respondent counsel to submit necessary information as to whether any notice was issued to the applicant for PH. The court, from the reply submitted by the respondent, observed that in terms of provisions of Section 78, no recovery proceedings can be initiated against the assessee before the expiry of three months from the date of the service of the order. In this case the proceedings came to be initiated in the form of attachment of the factory premises, within a month. Further, no opportunity of PH was given to the applicant by the authority before passing the order.
Held that:- The Hon’ble High Court allowed the petition and set aside the order dated 21st October, 2020. As the main order has been quashed and set aside, the order of attachment dated 17th December, 2020 also stands quashed and set aside and remitted the entire matter to the respondent for fresh consideration.