Himachal Pradesh HC Quashes GST Order, Cites Lack of Personal Hearing

Justice Prevails: Taxpayer Rights Upheld in Himachal Pradesh

In a significant ruling, the Himachal Pradesh High Court has set aside a Goods and Services Tax (GST) order, highlighting the importance of due process and taxpayer rights. The court emphasized that a personal hearing is a crucial component of fair assessment and adjudication.

The Case: A Missed Opportunity for Dialogue

The case revolved around a petition challenging a GST order issued without providing the petitioner with a personal hearing. The petitioner argued that this denial violated principles of natural justice, hindering their ability to present their case effectively.

Government Concedes: An “Unsustainable” Action

Adding weight to the petitioner’s argument, the Additional Advocate General representing the GST department admitted that the department’s action was indeed unsustainable under the law. This acknowledgment underscored the seriousness of the procedural lapse.

The Court’s Order: A Win for Transparency and Fairness

Taking cognisance of the arguments and the government’s admission, the High Court decisively allowed the petition. The impugned order was set aside with clear instructions.

• The court mandated that the petitioner be granted a proper personal hearing.
• This hearing will provide the taxpayer an opportunity to present their case and address the concerns raised by the GST authorities.

This ruling sends a strong message about the need for tax authorities to adhere to procedural requirements and ensure fairness in their dealings with taxpayers. It serves as a reminder that transparency and adherence to natural justice principles are paramount in the GST regime.