2024 (5) TMI 512 - HC - GST

Violation of principles of natural justice - opportunity of personal hearing not provided - HELD THAT - The SCN provides for details to be provided in connection with personal hearing inter alia, including the date, time and venue, apart from the date for providing reply no other particulars had been provided. Insofar as the column provided for the date, time and venue of personal hearing is concerned the same is filled up with the abbreviation N.A. . Admittedly, in this case, no personal hearing had been afforded to the petitioners. It is well-settled that before taking a decision under Section 73 of the said Act, the proper officer is obliged in terms of Section 75 (4) of the said Act to afford opportunity of hearing whether or not any request in writing has been received from the person. Such fact would corroborate from a plain reading of Section 75 (4) of the said Act, wherein it has been provided that an opportunity of hearing shall be granted where either a request is received in writing from the person chargeable with tax and penalty or where any adverse decision is contemplated against such person. The order passed by the proper officer under Section 73 of the said Act dated 29th December, 2023, cannot be sustained and the same is accordingly set aside - the proper officer is directed to dispose of the proceeding initiated under Section 73 of the said Act by affording the petitioners an opportunity of hearing. The entire proceeding under Section 73 of the said Act, should be disposed of by the proper officer not later than six weeks from the date of communication of this order on the basis of the observation made herein. The petition is disposed off.

Issues involved:
The writ petition challenges an order passed u/s 73 of the West Bengal Goods and Services Tax Act, 2017 for lack of opportunity of hearing and violation of principles of natural justice.

Details of the Judgment:

Issue 1: Lack of Opportunity of Hearing
- The petitioner challenged the order for not providing an opportunity of hearing as required u/s 75 (4) of the said Act.
- The petitioners' case was not appropriately presented due to the absence of a hearing, leading to a violation of natural justice and a miscarriage of justice.
- The court held that the absence of a hearing before passing the final order rendered the order unsustainable.
- The provision of appeal u/s 107 of the said Act does not bar challenging an order that violates principles of natural justice.

Issue 2: Compliance with Principles of Natural Justice
- The proper officer failed to afford an opportunity of hearing to the petitioners before passing the final order u/s 73 of the said Act.
- Even though the petitioners did not request a hearing in writing, since an adverse decision was contemplated, a hearing should have been provided.
- The court set aside the order passed by the proper officer under Section 73 of the said Act due to the failure to afford an opportunity of hearing.
- An alternative remedy of appeal u/s 107 does not preclude the court from intervening when an order is passed without complying with principles of natural justice.

Conclusion:
- The order dated 29th December, 2023 was set aside, directing the proper officer to dispose of the proceeding under Section 73 by affording the petitioners an opportunity of hearing.
- The entire proceeding under Section 73 should be completed within six weeks from the date of communication of the order.
- Since no affidavit-in-opposition was filed, the allegations in the writ petition were not deemed admitted.
- The writ petition was disposed of with no order as to costs, and parties were directed to receive a certified copy of the order upon compliance.

← Previous Next →