2022 (7) TMI 646 - HC - GST

Maintainability of intra court appeal - Clause 15 of the Letters Patent Act - seeking grant of one more opportunity of being heard - appellants had already deposited 10 per cent of the disputed tax while preferring the appeal - HELD THAT - From the perusal of the show cause notice dated 10 th September 2020, it is seen that a search was conducted in the business premises of the appellants and certain physical documents, stakes and accounts for the relevant period were taken and the appellants were directed to produce records of documents in terms of Section 71 (2) of the Act. The show cause notice refers of few dates on which the appellants had sought for time. Those dates and events preceded the issuance of show cause notice dated 10th September 2020. Since, the date of personal hearing was on 18th September 2020, that is during the peak COVID season, the appellants contended that they could not appear before the officer, resulting in the impugned order. Thus, one more opportunity can be granted to the appellants, more particularly, when the appellants had already deposited 10 per cent of the disputed tax while preferring the appeal - appeal disposed off.

Summary

Issues:
1. Maintainability of the intra Court appeal under Clause 15 of the Letters Patent Act.
2. Alleged violation of principles of natural justice in passing the assessment order.
3. Granting of another opportunity to the appellants to present their case.

Analysis:

1. Maintainability of the intra Court appeal under Clause 15 of the Letters Patent Act:
The appellants challenged the order of the Writ Court for not granting interim relief until the writ petition was heard. The learned Government advocate contended that the intra Court appeal was not maintainable under Clause 15 of the Letters Patent Act. The Court considered the issue and decided that since the matter was within a narrow scope, the writ petition itself could be disposed of with the consent of both parties, bypassing the need for an intra Court appeal.

2. Alleged violation of principles of natural justice in passing the assessment order:
The appellants were aggrieved by an assessment order under Section 74 (9) of the WBGST Act, 2017, dated 12th October 2020. They contended that they were not granted an opportunity before the order was passed, citing a hearing date during the COVID pandemic when their factory was not operational. The Court noted that the show cause notice referred to dates preceding the hearing date and considered the appellants' argument that they could not appear due to the pandemic. In light of these circumstances, the Court found merit in granting the appellants another opportunity to present their case.

3. Granting of another opportunity to the appellants to present their case:
The Court directed the appellants to treat the assessment order as a show cause notice and submit their objections within two weeks. They were also granted a personal hearing opportunity, and a speaking order was to be passed based on merit and in accordance with the law. The order dismissing the appeal dated 11th February 2022 was set aside, and the pre-deposited tax by the appellants was to remain in deposition, subject to interim orders by the assessing officer. Importantly, the Court clarified that it had not examined the merits of the case, leaving it open for the appellants to present all grounds before the assessing officer.

In conclusion, the High Court of Calcutta addressed the issues of maintainability of the appeal, alleged violation of natural justice, and the need to grant another opportunity to the appellants in a detailed and comprehensive manner, ensuring fairness and procedural correctness in the legal proceedings.