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The High Court of Gujarat has thrown a recovery notice of the Assistant Commissioner of State Tax for attaching the factory premises of Alkem Laboratories out of the window on the grounds that no opportunity of personal hearing was given to the company to defend itself. The court quashed and set aside the order imposing liability of service tax along with interest and penalty. It held that one opportunity should have been given to the company to appear in person and defend itself.
The court cited Section 75(4) of the CGST Act, which says that “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.” Accordingly, it directed the Assistant Commissioner to fix a date for hearing and submission and thereafter pass the final order “in accordance with law”.
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