Demand notice issued without providing a date for personal hearing is invalid

Demand notice issued without providing a date for personal hearing is invalid.

Case Name	Bijay Kumar Mohanty Vs The Chief Commissioner of CT and GST, Cuttack and others
Case No	W.P.(C) No.17594 of 2024 dated 08.08.2024
Court	THE HIGH COURT OF ORISSA AT CUTTACK
Section	Section 73 of Central Goods and Services Tax Act, 2017

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Summery:

Where in show cause notice there was direction to file reply as well as for personal hearing, however, date of filing reply was given, date for personal hearing was not given, reply to notice could not be submitted because assessee suffering old age ailments, respondent authority agreed to extend time to file reply and thereafter, if sought, for personal hearing, impugned demand was to be set aside and matter remanded.

FULL ORDER

Mr. Kar, learned senior advocates appear on behalf of petitioner and submits, under challenge is demand notice dated 30th April, 2024 issued by the State Tax Officer pertaining to financial year 2018-19 issued under section 73 of Odisha Goods and Services Tax Act, 2017. He draws attention to show cause notice dated 28th December, 2023 to point out, in it there was direction to file reply as well as for personal hearing on dates and times mentioned in the table. Referring to the table he demonstrates, only date of filing show cause was given. Date for personal hearing was not given. It amounted to violation of principles of natural justice. On query made he submits, reply to the show cause could not be submitted because petitioner is suffering old age ailments.
Mr. Mishra, learned advocate, Standing Counsel appears on behalf of revenue and submits, the show cause notice was issued pursuant to audit. It was presumed, on filing reply there may arise necessity of personal hearing, if at all. Otherwise, omission to file reply would mean the assessee has no defence to the demand. He relies on sub-section (4) in section 75.
Petitioner is relying on directions given in the show cause notice. It was in respect of a demand. Any defect in the show cause notice would cause violation of principles of natural justice. On query made Mr. Mishra in fairness submits, time be extended for petitioner to file reply and thereafter in event personal hearing is sought, it will be given.
In view of aforesaid, impugned demand is set aside and quashed. Petitioner has two weeks from date to file reply to the show cause. In event it does file reply, in it request may be made for personal hearing or separately thereafter.
The writ petition is disposed of.