2022 (7) TMI 912 - HC - GST

Violation of principles of natural justice - appellant was not granted adequate opportunity of putting forth their submissions as the full text of the show cause notice was not given - service of SCN - HELD THAT - It is found that the case of the appellant stands substantiated. The appellant has been served with the summary of show cause notice and not the full text of the show cause notice. On receipt of the summary of the show cause notice, the appellant sent a representation dated 7th January, 2022 in which he had pointed out that the summary alone has been received and that he had simultaneously denied the allegation as contained in the summary of the show cause notice. Though there may be adequate glitches in uploading the order or furnishing the copies of the full text of the notice, yet the department should ensure that an opportunity granted to the assessee is not reduced to mere formality and the opportunity should be an effective opportunity so that the principles of fairness is complied with - it is satisfying that the principles of natural justice had been violated even at the stage of commencement of the proceeding, the order of the learned Single Bench is inclined to be interfered. The matter is remanded to the appropriate respondent with a direction to issue fresh show cause notice containing full text of the allegation against the appellant and the appellant be granted reasonable time to submit his reply to the show cause notice after providing an opportunity of personal physical or virtual hearing and fresh orders be passed on merit and in accordance with law - Appeal allowed by way of remand.

Summary

Issues: Violation of principles of natural justice in show cause notice and adjudication order, Adequate opportunity for submission, Compliance with principles of fairness

In this case, the appellant filed a writ petition challenging a show cause notice and an adjudication order, alleging a violation of principles of natural justice as they were only provided with a summary of the show cause notice and not the full text. The learned Single Bench directed the production of the original file and served the full text during the hearing, but ultimately dismissed the writ petition, prompting the appellant to appeal. Upon hearing both parties, the Court found merit in the appellant's case, noting the lack of adequate opportunity for submission due to not receiving the full text of the notice. The Court emphasized that the opportunity granted to the appellant should not be a mere formality, but an effective one to ensure compliance with fairness principles.

The Court observed discrepancies in the dates mentioned in the adjudication order, highlighting technical issues in uploading the order. Despite these glitches, the Court stressed the importance of ensuring that the appellant is granted a meaningful opportunity to present their case. Due to the violation of natural justice principles from the outset, the Court decided to set aside the orders and remand the matter to the appropriate respondent. The direction was given to issue a fresh show cause notice with the full text of the allegations, allowing the appellant a reasonable time for a response with an opportunity for a personal physical or virtual hearing. The Court emphasized that any fresh orders should be passed on merit and in accordance with the law.

As a result of remanding the matter based on natural justice grounds, the appellant was precluded from raising the issue of limitation before the concerned authority. The Court allowed the appeal, set aside the previous orders, and disposed of the connected application. The judgment underscores the significance of upholding principles of natural justice and ensuring that parties are provided with a genuine opportunity to present their case effectively, without procedural shortcomings.