Opportunity of being heard shall be given before passing of any order by the GST Authority

Last updated: 05 March 2021

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Quick Summary

The Gujarat High Court has quashed an order by the Assistant Commissioner of State Tax that attached a factory premise for alleged service tax, interest, and penalty dues. The court found that the authority failed to provide Alkem Laboratories Ltd. with a personal hearing before passing the order. This decision reinforces the principle of natural justice, stating that individuals must be given a chance to be heard before any adverse decision is made against them, as mandated by Section 75(4) of the CGST Act.

Court :
Gujarat High Court

Brief :
The Hon’ble High Court of Gujarat in Alkem Laboratories Ltd. v. Union of India [R/Special Civil Application No. 994 of 2021, decided on February 4, 2021] quashed and set aside the order imposing liability of Service tax along with interest & penalty and order in Form GST DRC-16 by the Assistant Commissioner for attachment of factory premises on the ground that no opportunity of personal hearing was given and held that one opportunity shall be given to appear and to defend the case.

Citation :
R/Special Civil Application No. 994 of 2021, decided on February 4, 2021]

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