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2021 (4) TMI 1232 - HC - GSTDemand of tax with penalty - petitioner was not afforded reasonable opportunity of presenting his case before the said authority - violation of principles of natural justice - HELD THAT - In plain terms the order passed by the said authority suffers from grossest possible violation of principles of natural justice. Having issued notice calling upon the petitioner why certain demand of tax with penalty not be confirmed he passed the final order confirming the demand on the same date as the notice and long before the time he had granted the petitioner to respond to the notice. We may recall the show-cause notice was issued on 06.11.2018 which required the petitioner to appear before the said authority on 23.11.2018. Without permitting the petitioner to appear and file reply and oppose the demands the Inspector confirmed the demand by passing separate orders on 06.11.2018. This was wholly impermissible - Petition disposed off.
Issues: Violation of principles of natural justice in passing demand orders without affording reasonable opportunity to the petitioner.
The judgment pertains to a challenge against a demand order passed by the Inspector of Sales Tax. The petitioner, a registered dealer under the Tripura GST Act, had placed orders with a Kolkata-based company for certain goods. During transport, the goods were intercepted at a check post, and discrepancies in the E-way bill were noted. Subsequently, on 06.11.2018, the Inspector of Taxes issued a notice to the petitioner under the GST Acts, raising a tentative demand of GST and IGST tax with penalty. The petitioner was called to appear before the authority on 23.11.2018. However, on the same day, the Inspector passed separate orders confirming the demand of tax and penalty. The High Court found that the orders suffered from a grave violation of natural justice principles as the final order was passed before the petitioner could respond to the notice. The Court emphasized that the Inspector's actions were impermissible, quashed the orders, and directed the competent authority to allow the petitioner to file a reply to the show-cause notice by 31st May, 2021, following which a fresh order should be passed in accordance with the law. The High Court highlighted that the Inspector's actions in confirming the demand orders on the same day as issuing the notice, without providing the petitioner an opportunity to respond, amounted to a significant violation of natural justice principles. By passing final orders before the petitioner could present their case, the authority deprived the petitioner of a fair opportunity to oppose the demands and file a reply. The Court deemed this conduct as impermissible and emphasized the importance of adhering to principles of natural justice in such proceedings. Consequently, the High Court quashed the impugned orders and directed the competent authority to pass a fresh order after allowing the petitioner to file a reply to the show-cause notice by a specified date. In conclusion, the High Court disposed of the petition by setting aside the demand orders due to the violation of natural justice principles. The Court directed the competent authority to afford the petitioner an opportunity to respond to the show-cause notice and file a reply by a specified date, following which a fresh order should be passed in accordance with the law. Any pending applications were also disposed of as per the judgment.
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