GST:
HC set aside order since no hearing given despite assessee expressly requested for personal hearing in reply to notice:
- The assessee, a developer, availed the benefit of Notification No. 03/2019–Central Tax (Rate) and was paying GST at 1%. The respondents issued show cause notices for levy of GST at 5%, which the assessee replied to.
- The assessee requested a personal hearing, which was not granted, and argued that the respondent exceeded jurisdiction by applying GST at 5% merely on allegation of non-compliance with Notification No. 3/2019.
- The assessee also argued that the show cause notice did not contain essential ingredients for invoking section 74 of GST enactments.
- The respondent-authorities argued that the assessee failed to provide evidence that projects developed qualified as affordable housing projects and that the impugned order contained reasons for rejecting the assessee’s request that GST be imposed at 1%.
- The court held that interference with orders was warranted as no personal hearing was granted. However, since the orders were preceded by an intimation, a show cause notice, and consideration of the assessee’s replies, the revenue interest was also to be considered. The impugned orders were set aside subject to the assessee remitting 5% of the disputed tax demand
Madras HC – Tvl. Town & City Developers v. State Tax Officer (Intelligence) [W.P. NOS. 11579, 11591 & 11595 OF 2024]
