2019 (7) TMI 1330 - HC - GST

Principles of Natural Justice - order passed without hearing to the petitioner - HELD THAT - Natural justice is a branch of public law. It is a formidable weapon which can be wielded to secure justice to citizens. Rules of natural justice are basic values which a man has cherished throughout the ages. They are embedded in our constitutional framework and their pristine glory and primacy cannot be allowed to be submerged by exigencies of particular situations or cases. Principles of natural justice control all actions of public authorities by applying rules relating to reasonableness, good faith and justice, equity and good conscience. Natural justice is a part of law which relates to administration of justice. Rules of natural justice are indeed great assurances of justice and fairness - The golden rule which stands firmly established is that the doctrine of natural justice is not only to secure justice but to prevent miscarriage of justice. Its essence is good conscience in a given situation; nothing more-but nothing less. Petition allowed.

Summary

Issues:
Violation of principles of natural justice in passing the order without hearing the petitioner.

Analysis:
The petitioner, a registered dealer under the Goods and Services Tax Act, faced a situation where goods and vehicle were seized by the Assistant Commissioner, State Tax, Mobile Squad Unit, Faizabad, under Section 129(1) of the UPGST Act. This action was taken as the Tax Invoice disclosed the sale of Aluminium Section only, while Aluminium Section and Aluminium Composite Sheets were found in the vehicle. Subsequently, a show cause notice was issued proposing to levy demand tax and penalty, which the petitioner contested by filing a First Appeal before the Additional Commissioner. However, the appeal was dismissed without hearing the petitioner, leading to a violation of principles of natural justice.

The judgment emphasized the importance of natural justice in administrative law, describing it as justice that is simple, elementary, and based on common-sense principles. The concept of natural justice ensures fair play and adherence to fundamental rules of procedure in administrative actions. It was highlighted that natural justice is another name for common-sense justice and is essential in ensuring justice is administered liberally, free from technicalities and narrow considerations associated with formulated laws.

The principles of natural justice, including the audi alteram partem rule, were discussed in detail. The audi alteram partem rule states that no one should be condemned unheard, emphasizing the significance of providing notice and a reasonable opportunity to be heard before passing any adverse order. The judgment referenced historic documents and legal cases to underscore the evolution and refinement of the principles of natural justice over time.

The judgment further clarified that while the concept of natural justice may lack precision in its definition, the principles of natural justice are universally accepted and enforced. It highlighted that natural justice is a branch of public law, serving as a formidable tool to secure justice for citizens. The golden rule of natural justice was reiterated, emphasizing that its essence lies in good conscience in a given situation to prevent miscarriage of justice.

Citing legal precedents, including judgments by the Hon'ble Apex Court, the judgment concluded by allowing the writ petition, setting aside the impugned order, and remanding the matter back to the Appellate Authority to decide within a specified period while directing the petitioner not to seek unnecessary adjournments. The ruling underscored the importance of upholding principles of natural justice in administrative actions to ensure fairness and prevent injustice.