2019 (4) TMI 1247 - HC - GST

Principles of natural justice - Confiscation - noting sheet is totally blank - section 130 of the Central Goods and Services Tax Act / Gujarat Goods and Services Tax Act, 2017 - HELD THAT - There is nothing on record to indicate relevant dates on which the proceedings took place. Considering the fact that this is a file maintained by a Government authority, it is difficult to understand as to how there are no notings with regard to the proceedings undertaken by the concerned officer. Stand over to 24th April, 2019 to enable the respondents to file an affidavit-in-reply.

Summary

Issues:
1. Breach of principles of natural justice in passing an order under section 130 of the Central Goods and Services Tax Act, 2017.
2. Lack of relevant dates and notings in the file maintained by a Government authority regarding the proceedings under section 130 of the CGST Act.

Issue 1: Breach of principles of natural justice:
The petitioners were called for a hearing regarding a notice under section 130 of the CGST Act. The petitioners had filed a reply which was received by the authority, but the concerned authority was not available on the scheduled date. The petitioners were informed that the hearing would take place on a later date, but the impugned order was passed on the initial date, leading to a perceived breach of natural justice. The court issued notice and directed the respondents to explain when an opportunity of hearing was granted to the petitioners. The court emphasized the importance of adhering to principles of natural justice and granted time for the respondents to file an affidavit-in-reply.

Issue 2: Lack of relevant dates and notings in the file:
Upon reviewing the original file related to the proceedings resulting in an order of confiscation under section 130 of the CGST Act, it was observed that the noting sheet was blank, lacking any indication of relevant dates or proceedings conducted. The court expressed concern over the absence of notings in a file maintained by a Government authority, questioning how the proceedings were not recorded. The matter was adjourned to allow the respondents to file an affidavit-in-reply and to provide information about the practice of making notings of proceedings by State Tax Officers. Notice was issued to the newly added respondent for this purpose.

This judgment highlights the significance of procedural fairness and documentation in legal proceedings, emphasizing the need for authorities to adhere to principles of natural justice and maintain accurate records of proceedings. The court's meticulous review of the case file underscores the importance of transparency and accountability in administrative actions, ensuring that due process is followed in matters concerning taxation and regulatory enforcement.