Final GST demand order quashed as absence of mandatory personal hearing under Section 75(4) vitiated proceedings

Case Summary

Case Title: Eminent Logistics v. The Assistant Commissioner of State Tax, Ballygunge & Ors.
Court: Calcutta High Court
Petition No.: WPA 3877 of 2025
Category of Dispute: Validity of order under Section 73 without personal hearing (Natural Justice)
Date of Judgment: 23.06.2025
Relevant Sections: Section 73 & Section 75(4) of the CGST/WBGST Act, 2017

Facts (Para 1–2)

The petitioner, Eminent Logistics, challenged the final order issued under Section 73 of the WBGST/CGST Act for FY 2022–23. The show cause notice (Form GST DRC-01 dated 28.05.2024) was admittedly received but it did not mention any date for personal hearing. The petitioner contended that this omission violated its statutory right to be heard under Section 75(4). Reliance was placed on the recent judgment in Greentech IT City (P) Ltd. v. State of West Bengal (Calcutta HC, 19.05.2025).

Questions/Issues

• Whether failure to provide a personal hearing before passing an adverse order under Section 73 violates Section 75(4) of the Act?

• Whether absence of a written request for personal hearing absolves the officer of this obligation?

Observations (Para 3–4)

The State argued that multiple opportunities were given for filing a reply, but the petitioner did not respond. However, it was conceded that no personal hearing was actually granted. The Court emphasized that Section 75(4) makes it obligatory for the proper officer to afford an opportunity of hearing either when demanded in writing or when an adverse order is contemplated. Even if no request was filed, since the order was adverse, the officer was bound to provide hearing. Hence, failure to do so amounted to breach of natural justice.

Judgement (Para 5–6)

The Court quashed the order dated 28.05.2025 and remanded the matter back to the proper officer. While no fresh chance to file written reply would be allowed, the officer must grant a personal hearing and consider any documents placed therein. The writ petition was accordingly disposed of.

Table of Cases Referred

Between Fine Lines

For businesses, this ruling reinforces that even if they fail to file a reply, tax authorities cannot pass adverse GST orders without granting a personal hearing. Orders issued without such hearing are procedurally defective and liable to be set aside. Industry should insist on this right as a safeguard against one-sided proceedings.

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