Case Title
[Name of Petitioner] vs. State of Gujarat & Ors.
Court: Gujarat High Court
Bench: Hon’ble Mr. Justice A.S. Supehia
Order Date: 28 August 2024 (OIO) | 06 March 2025 (Appeal)
Provision Involved: Section 75 of the Gujarat GST Act, 2017
Brief Background of the Case
The petitioner challenged:
- Order-in-Original dated 28.08.2024, and
- Appellate Order dated 06.03.2025
on the ground that no proper opportunity of personal hearing was given before passing adverse orders under the GST law.
The dispute arose from a Show Cause Notice (SCN) issued in Form GST DRC-01, where:
- Date for reply was mentioned
- BUT date, time, and venue of personal hearing were left blank
⚖️ Key Legal Issue Before the Court
Whether an adjudication order under GST is valid when the assessee is not informed about the date, time, and venue of personal hearing?
📌 Arguments by the Petitioner
The petitioner contended that:
✔ Section 75(4) of the GGST Act mandates personal hearing before passing adverse order
✔ DRC-01 did not specify:
- Date of hearing
- Time of hearing
- Venue of hearing
✔ Portal only showed generic messages
✔ Without hearing, order violates principles of natural justice
✔ Hence, the Order-in-Original and appellate order are illegal
🧾 Stand of the GST Department
The department argued that:
- Multiple opportunities were granted
- Portal showed reminders and adjournments
- Assessee failed to upload documents
- Separate notice for hearing is not mandatory
⚖️ Observations of the Gujarat High Court
✅ Court’s Important Findings:
🔹 The Show Cause Notice (DRC-01) mentioned:
| Particular | Status |
|---|---|
| Reply date | Mentioned |
| Date of hearing | ❌ Not mentioned |
| Time of hearing | ❌ Not mentioned |
| Venue | ❌ Not mentioned |
🔹 Portal message merely stated:
“You may appear or submit documents… otherwise order will be passed.”
➡️ This does NOT amount to a valid personal hearing notice.
📘 Relevant Legal Provision – Section 75 of GST Act
Section 75(4) – Mandatory Personal Hearing
“An opportunity of hearing shall be granted where any adverse decision is contemplated.”
Section 75(5) – Adjournments
Maximum three adjournments allowed if sufficient cause is shown.
Court’s Interpretation
- Hearing must be real and effective
- Not a mere portal formality
- Date, time & venue must be clearly communicated
🧑⚖️ Court’s Final Decision
✅ Orders quashed
- Order-in-Original dated 28.08.2024
- Appellate order dated 06.03.2025
✅ Matter remanded back to Adjudicating Authority
✅ Direction issued:
- Authority must intimate date, time & venue of hearing
- Opportunity must be meaningful
- If assessee fails to appear despite intimation → authority may proceed ex-parte
✅ All rights of the assessee kept open
📌 Important Legal Principle Established
“Passing an order without specifying date, time and venue of personal hearing violates principles of natural justice and Section 75 of GST Act.”
📚 Supporting Case Laws (For Reference)
- Dharampal Satyapal Ltd. v. CCE (2015)
→ Opportunity of hearing is mandatory before adverse action - Andaman Timber Industries v. CCE (SC)
→ Denial of hearing = violation of natural justice - Aggarwal Dyeing v. State of Gujarat (Guj HC)
→ Mechanical adjudication without hearing is invalid
✅ Practical Takeaways for Taxpayers
✔ Always check if date, time & venue of hearing are mentioned
✔ Portal messages alone are not sufficient
✔ If hearing is not granted → order can be challenged
✔ Section 75 protects taxpayer rights
✔ Courts strictly enforce natural justice in GST matters