2018 (7) TMI 1098 - HC - GST

Principles of Natural Justice - petitioner s prayer for quashing the impugned order for the reason that principles of natural justice stood violated - Held that - The authority below has to adjudicate the factual matrix and the parties, if so aggrieved, can resort to the appropriate statutory remedy - petition disposed off on the terms as mutually agreed.

Issues:
1. Violation of principles of natural justice in the impugned order dated 26.9.2017.
2. Disbursement of budgetary support refunds.
3. Quashing of the impugned order and directions for a fresh decision.
4. Reservation of liberty for parties to submit additional material.
5. Decision on payment/refund of Goods and Services Tax (GST).
6. Stay on coercive action against the petitioner.

Analysis:

1. Violation of principles of natural justice:
The judgment addresses the violation of principles of natural justice in the impugned order dated 26.9.2017. It is noted that the order lacked adherence to these principles, leading to its quashing and setting aside. The court directed the appropriate authority to re-decide the matter after providing an opportunity of hearing to all concerned. This decision was made in light of the peculiar facts and circumstances of the case, emphasizing the importance of affording due process to the parties involved.

2. Disbursement of budgetary support refunds:
The judgment also delves into the issue of disbursement of budgetary support refunds. The court highlighted the contention regarding the delay in refund disbursement due to insufficient funds allocated by the Department of Industrial Policy and Promotion (DIPP). It was mentioned that additional funds had been released by DIPP for the disbursal of budgetary support refunds, which were in the process of allocation to various divisions. The court acknowledged the pending applications for refunds, including the petitioner's, and directed that these applications be processed for sanction and disbursal in accordance with the interim order of the Hon'ble High Court.

3. Quashing of the impugned order and directions for a fresh decision:
In response to the petitioner's prayer for quashing the impugned order dated 26.9.2017, the court decided to set aside the order due to the violation of natural justice principles. The authority was directed to re-decide the matter after providing an opportunity of hearing to all concerned. Both parties agreed to this proposition, and the judgment disposed of the present petition accordingly.

4. Reservation of liberty for parties to submit additional material:
The judgment reserved liberty for each party to present additional material before the appropriate authority if required or desired. This provision ensured that the parties had the opportunity to supplement the record with any relevant information that could assist in the decision-making process.

5. Decision on payment/refund of Goods and Services Tax (GST):
The court also instructed the appropriate authority to decide on the issue of payment/refund of Goods and Services Tax (GST) up to date. This direction aimed to address any outstanding matters related to GST payments or refunds, ensuring that the parties' financial obligations were appropriately resolved.

6. Stay on coercive action against the petitioner:
Until the appropriate authority passed the fresh order after re-hearing the matter, the judgment ordered a stay on any coercive action against the petitioner. This protective measure aimed to prevent any adverse actions or enforcement proceedings against the petitioner until a new decision was made by the authority.

In conclusion, the judgment comprehensively addressed various issues related to the violation of natural justice, refund disbursement, quashing of the impugned order, liberty for submitting additional material, decision on GST payments/refunds, and the stay on coercive actions, ensuring a fair and just resolution in the case.

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