Facts of the Case

M/s. Tata Steel Ltd., a company having its registered office at Bombay House, Mumbai, and represented through its Chief Legal Counsel (Indirect Taxation), challenged a show-cause notice dated 11.08.2021 issued under Section 73 of the Chhattisgarh Goods and Services Tax Act, 2017 by the Deputy Commissioner of State Tax, Division-2, Raipur. The notice purported to grant an opportunity of personal hearing but left the columns for date, time and venue blank. The petitioner contended that no real opportunity of hearing had been afforded before determination of the tax value, rendering the notice illegal. The State opposed the petition, submitting that several opportunities had been given to the petitioner but were not availed, and that no specific application for a personal hearing had been made.

Issues Involved

  1. Whether a show-cause notice under Section 73 of the CGGST Act that leaves the date, time and venue of personal hearing blank complies with the mandatory hearing requirement in Section 75(4).
  2. Whether the petitioner's failure to specifically request a personal hearing dispensed with the authority's obligation to grant one.

Petitioner's Arguments

  • The notice's personal-hearing particulars were left entirely blank — no date, time or venue was specified — even though the notice purported to grant a hearing opportunity.
  • Under Section 75(4) of the Act, an opportunity of hearing must be granted before determining the tax value, and no such opportunity was, in substance, ever afforded.
  • In the absence of a genuine, actionable hearing opportunity, the entire notice and the proceedings founded on it were illegal and liable to be set aside.

Respondent's Arguments

  • Several opportunities had already been extended to the petitioner to appear before the authority, none of which were availed.
  • The authority had issued the notice and granted liberty to file a reply, which discharged its statutory obligation.
  • Since the petitioner never moved any application specifically requesting a personal hearing, the mandatory requirement under Section 75(4) was not attracted on the facts.

Court Order/Findings

  • On perusing the notice dated 11.08.2021, the Court found that while its opening paragraph purported to grant a personal hearing opportunity, the date, time and venue fields were left blank, so no real opportunity in fact existed.
  • Section 75(4) of the Chhattisgarh GST Act, 2017 mandates a hearing where a written request is received or where an adverse decision is contemplated, and a notice that grants a hearing in name but supplies no actionable particulars fails to satisfy that mandate.
  • The petition was disposed of directing the authority to afford a genuine opportunity of hearing strictly in accordance with Section 75(4), fixing a definite date for personal appearance.
  • Liberty was reserved to the Revenue to proceed further if the petitioner failed to appear on the date so fixed.

Important Clarification

  • A show-cause notice that nominally offers a personal hearing but leaves the date, time and venue blank does not satisfy the mandatory hearing requirement of Section 75(4) of the GST Act.
  • The obligation to grant a hearing under Section 75(4) arises either on a written request from the taxpayer or wherever an adverse decision is contemplated — absence of a specific request does not, by itself, excuse the authority where adverse tax determination is in prospect.
  • Non-appearance despite a properly particularised hearing notice, however, entitles the Revenue to proceed with adjudication.

Sections Involved

  • Section 73, Chhattisgarh Goods and Services Tax Act, 2017 — governs determination of tax not paid, short-paid, or input tax credit wrongly availed for reasons other than fraud.
  • Section 75(4), Chhattisgarh Goods and Services Tax Act, 2017 — mandates an opportunity of hearing where requested in writing or where an adverse decision is contemplated.

Decision – In Favour of

The petition was disposed of with directions, in favour of the Assessee to the limited extent of securing a properly particularised personal hearing before adjudication; the underlying show-cause notice itself was not quashed, and the Revenue retains liberty to proceed if the petitioner does not avail the hearing now afforded.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case No.: WPT No.167 of 2023
  • CNR: Not available on record
  • Coram: Hon'ble Shri Justice Rakesh Mohan Pandey
  • Decision Date: 07.11.2023
  • Disposal Nature: Writ petition disposed of with direction to grant opportunity of personal hearing

Link to Download the Order

Download the full judgment (PDF)

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.