2023 (3) TMI 425 - HC - GST

Seeking to restrain the Respondents themselves, their officers, subordinates, servants and agents from taking any steps pursuant to the impugned Summary Order - order and the show cause notice are issued without giving an opportunity and without accompanying reasoned adjudication order i.e. only summary - principles of natural justice (audi alterem partem) - violation of statutory provisions u/s 73 of the Maharashtra Goods and Services Tax Act, 2017 and Rule 142 of the MGST Rules. HELD THAT - Despite direction that the reply affidavit should only deal with the aspects of unreasoned order, still 20 pages reply has been filed various contentions taking. In the reply affidavit, in para 5 (iv), it is accepted that only summary of the order is issued without mentioning the reasons for dis-allowance. It is stated that hearing was given and reasonable opportunity was granted. However, it is clear the officer has not passed a detailed order, and hence, the grievance of the Petitioner that without detailed order remedy of appeal is illusory, will have to be accepted. There was particular reason why it was directed that reply affidavit be filed on the limited ground of breach of principles of natural justice, because if proceedings have to be remanded, then upon remand, the authority can apply his mind after giving an opportunity. Therefore, the contentions raised in the reply affidavit, which seek to comment on the merits of the claim, shall be treated as prima facie. The Writ Petition is disposed of setting aside the impugned order.

Summary

Issues:
Challenge to summary order dated 9 June 2020 for violation of natural justice and statutory provisions under MGST Act and MGST Rules.

Analysis:
The petitioner sought to challenge the order dated 9 June 2020 passed by the State Tax Officer, contending that it was issued without giving an opportunity and without a reasoned adjudication order, which was in violation of natural justice principles and statutory provisions under Section 73 of the Maharashtra Goods and Services Tax Act, 2017, and Rule 142 of the MGST Rules.

The Writ Petition was scheduled for hearing on 2 January 2023, and subsequently adjourned to explore potential remedial actions. The learned AGP suggested holding a meeting to attempt dispute resolution. On 24 January 2023, after hearing both parties, it was noted that despite a joint meeting, no resolution was reached. The petitioner's counsel highlighted that the summary order lacked reasons, and the reasoned order preceding it was not communicated, hindering the petitioner's right to appeal. The court directed the respondents to file a reply affidavit on this aspect and set the next hearing for 30 January 2023 for further directions.

The reply affidavit filed by the Joint Commissioner of State Tax acknowledged the absence of reasons in the summary order and admitted that no detailed order was passed. The court, noting the deficiency in providing a detailed order, set aside the impugned order dated 9 June 2020 and reinstated the proceedings. The court emphasized that the reply affidavit should focus on the breach of natural justice principles, as any further proceedings would require the authority to consider the matter afresh after providing an opportunity to the petitioner. The Writ Petition was disposed of, setting aside the impugned order with specific observations.

The court directed the petitioner to appear before the jurisdictional officer on 8 March 2023, who would then pass an appropriate order in accordance with the law after providing an opportunity to the petitioner. All contentions, including the issue of jurisdiction raised by the petitioner, were kept open for future consideration.