Section 75(4) of the Central Goods and Services Tax Act, 2017 lays down the provision for the opportunity of hearing in the GST regime. The said section lays down that:
Section 75(4) – An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
Principles of natural justice mandates the opportunity of fair hearing in GST regime to the assessee and the same has been upheld in various judicial rulings. Section 75 under chapter XV of the CENTRAL GOODS AND SERVICES TAX ACT, 2017 discusses general provisions relating to the determination of tax.
Subsection 4 of section 75 lays down the provision for an opportunity of hearing in GST regime. If the assessee chooses not to avail such an opportunity, then the order passed cannot be said to be in violation of the said section.
The dispute was raised in this regard in the case of M/S. BRIGHT STEELS, VERSUS THE STATE TAX OFFICER, INSPECTION CELL-II, TIRUCHIRAPPALLI before the MADRAS HIGH COURT wherein it was held that the respondent has followed Section 75(4) by providing multiple opportunities of hearing but it was only the appellant who chose not to avail the opportunities granted by the respondent for the personal hearing as mandated under Section 75(4) of the Act.
Judgement can be read and downloaded at the end of the article.
Can Assessee ask for adjournment of the hearing in GST regime and for how many times?
Yes, the assessee can seek Adjournment when given an opportunity of hearing in GST if there are sufficient reasons. Section 75(5) lays down the provision for this with the restriction to adjournments up to 3 times.
Section 75(5) lays down as follows:
The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing:
Provided that no such adjournment shall be granted for more than three times to a person during the proceedings in GST regime.
