Niyati
The issue of a "Demand Order Without Hearing" under the CGST Act, 2017 is a legal concerns. The taxpayer must be given an opportunity to be heard before issuing any demand.
Section 75(4) of the CGST Act specifically states that if a penalty is imposed in the case, the officer must grant a personal hearing. This includes oral hearings and provides opportunity to submit a reply to the Show Cause Notice (SCN).
The hearing is not optional but it is a statutory right of the taxpayer.
Reply Must Be Considered
- If a taxpayer have submitted a written reply to the SCN, authorities must review it.
- Any order passed without dealing with your reply is open to challenge in appeal or writ.
- Demand order passed without proper adjudication is invalid as it disregards your right to defend yourself.
- A Show Cause Notice (SCN) is not a final decision but it only initiates the process.
- A final demand order must come only after full adjudication, which includes reviewing the reply and granting a hearing.
Judicial Precedents
Courts have quashed demand orders in several cases where:
- The reply was ignored
- Hearing was not granted
- Authorities acted arbitrarily
These precedents support the taxpayer's right to a fair process.
Reply Filed But Demand Ignored
If you have receive a demand order without giving a chance of hearing or without your reply being considered, you have the following rights:
- To Appeal u/s 107 of the CGST Act which allows you to file an appeal against any order passed by an adjudicating authority under the CGST Act.
- To File a Writ Petition if the demand order is illegal or violates the fundamental rights then you can approach to High Court.
- This applies when the order shows no reference or reasoning based on your reply.
Remedies
As a taxpayer, you should always verify whether your written reply was addressed and whether the hearing was granted.
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