2022 (1) TMI 1308 - HC - GST

Levy of penalty - whether the proceedings concluded before the authority was without complying with the principles of natural justice? - HELD THAT - The mahazar indicates that the DVD was copied from a pen drive. The contents of the DVD can be contradicted with the pen drive alleged to be in possession of the appellant. We cannot find that prima facie there was a denial of any natural justice to the appellant while concluding the proceedings before the authority. In the absence of any serious lapse in concluding the proceedings, this Court under Article 226 will not be justified in interfering with such matters. We concur with the findings made by the learned Single Judge. Appeal dismissed.

Summary

Issues:
Challenge to penalty imposed under Central Goods & Service Tax Act, 2017 based on principles of natural justice and procedural errors.

Analysis:
The writ appeal was filed by a petitioner challenging a penalty imposed under the Central Goods & Service Tax Act, 2017, alleging lack of compliance with principles of natural justice and procedural errors. The appellant contended that the penalty proceedings were concluded without providing a copy of the DVD containing relevant data collected during an inspection at their business place. The appellant further argued that discrepancies in the proceedings arose due to the non-furnishing of the DVD copy, as the details of accounts from September 2019 were included despite being limited to December 2017 in the mahazar prepared during the inspection.

The learned Single Judge held that the matter was appealable and not suitable for interference under Article 226 of the Constitution, emphasizing that disputed factual questions should be addressed through the appeal process rather than by the Court. The appellant's counsel, in the appeal before the High Court, contended that the denial of opportunity to the appellant before the authority warranted the Court's intervention to rectify procedural deficiencies.

Upon detailed examination, the High Court found that disputed questions of fact were involved, particularly regarding the contents of the DVD copied from a pen drive during the inspection. The Court concluded that there was no prima facie denial of natural justice to the appellant during the proceedings, and in the absence of significant procedural lapses, declined to interfere under Article 226. Consequently, the High Court upheld the Single Judge's decision, dismissing the appeal in limine.