2023 (5) TMI 1071 - HC - GST

Validity of orders passed under Section 74(9) of the W.B.G.S.T. Act, 2017 - appealable order or not - appellant did not choose to file appeals but approached the learned Writ Court on the ground that opportunity of personal hearing has to be mandatorily granted in terms of Section 75(4) of the Act - principles of natural justice - HELD THAT - Considering the peculiar facts situation in the instant case, namely that by way of a third party garnishee order, the entire tax demanded from the appellant have been recovered, it is opined that the revenue will not be prejudiced if a fresh opportunity of personal hearing is granted to the appellant to put forth his submissions - submission of the learned advocate appearing for the respondents/State is that the interest of the revenue should be protected. The interest of the revenue has been sufficiently protected inasmuch as the entire tax demanded under the three impugned orders have been fully recovered by way of garnishee proceedings. The writ petitions as well as these appeals are disposed of by directing the appellant to treat the orders under Section 74(9) of the W.B.G.S.T. Act, 2017, which were impugned in the writ petitions as the show-cause notice and the appellant is directed to file his objections to the notice within 15 days from the date of receipt of server copy of this judgement and order.

Summary

Issues involved: Appeal against orders passed under Section 74(9) of the W.B.G.S.T. Act, 2017 for lack of personal hearing opportunity.

Judgment Summary:

Issue 1: Lack of Personal Hearing Opportunity

The appeals were filed against orders passed under Section 74(9) of the W.B.G.S.T. Act, 2017, where the appellant contended that the opportunity of personal hearing as mandated by Section 75(4) of the Act was not granted. The appellant did not file appeals but approached the Writ Court seeking to set aside the orders dated 10th November, 2022, and 2nd December, 2022. During the pendency of the writ petitions, the entire demanded amount was recovered, except for penalty and interest.

Issue 2: Failure to Attend Hearing

The appellant failed to appear for the hearing dates fixed by the respondents, despite notice being issued. The appellant argued that in the show-cause notice, personal hearing was marked as "not applicable," emphasizing the lack of mandatory personal hearing.

Issue 3: Recovery of Demanded Amount

The entire tax demanded from the appellant was recovered through a third-party garnishee order during the pendency of the case, ensuring that the revenue was not prejudiced. The interest of the revenue was deemed sufficiently protected as the tax amount had been fully recovered.

Final Judgment

The High Court directed the appellant to treat the impugned orders as show-cause notices and file objections within 15 days. The Deputy Commissioner was instructed to grant a fresh opportunity of personal hearing to the appellant and pass new orders based on merits and in accordance with the law. The recovered amount through garnishee proceedings would abide by the fresh orders. The respondent authorities were ordered to de-freeze the appellant's bank account. No costs were awarded, and parties were to receive certified copies of the order promptly upon compliance with legal formalities.