2024 (5) TMI 1182 - HC - GST

Violation of principles of natural justice - inadequate opportunity for hearing by appellate authority - denial of interim order - HELD THAT - The appellate authority fixed the date of personal hearing on 29.05.2023 and admittedly the appellant did not attend the personal hearing and the order has been passed. Under normal circumstances, the court would have declined to interfere with the order - the appeal filed by the appellant was presented before the appellate authority on 25th May, 2022 and the appeal was taken up for hearing after one year and on the very first date, namely, 29.05.2023 the appeal has been disposed of. Since there has been a delay of one year in taking up the appeal, the appellate authority could have granted one more opportunity to the appellant by issuing a fresh notice of hearing. Furthermore, none of the grounds raised by the appellant in the appeal petition which is about 38 pages have been considered or dealt with. The appeal has to be heard out on merits and fresh orders have to be passed by the statutory appellate authority - The order passed by the appellate authority dated 29.05.2023 is set aside and the matter is remanded to the appellate authority for fresh consideration. Petition allowed by way of remand.

Summary

Issues Involved: Appeal against denial of interim order, inadequate opportunity for hearing by appellate authority.

Appeal Against Denial of Interim Order:
The High Court of Calcutta heard an intra court appeal against the order dated 26th September, 2023, in which the learned Single Bench had refused to grant any interim order in favor of the appellant. The writ petition was pending, and a direction was given to file an affidavit-in-opposition by the respondent department. At the request of the appellant's advocates, the writ petition and the appeal were disposed of by a common judgment and order.

Inadequate Opportunity for Hearing by Appellate Authority:
The petitioner was dissatisfied with an order issued by the appellate authority, the Joint Commissioner, State Tax, Berhampur Circle, on the basis that the appellant was not provided with a sufficient opportunity. The appellate authority scheduled a personal hearing on 29.05.2023, but the appellant did not attend, leading to the order being passed. Despite the normal circumstances where the court would not interfere with the order, it was noted that the appeal had been filed a year prior to the hearing date, and the appeal was disposed of on the first hearing date without considering the grounds raised in the 38-page appeal petition.

The High Court found that due to the one-year delay in hearing the appeal, the appellate authority should have granted another opportunity to the appellant by issuing a fresh notice of hearing. Additionally, none of the grounds raised by the appellant in the appeal petition were addressed. Consequently, the Court concluded that the appeal must be heard on its merits, and fresh orders need to be issued by the statutory appellate authority.

As a result, the appeal and the writ petition were allowed, setting aside the order of the appellate authority dated 29.05.2023. The matter was remanded to the appellate authority for a fresh consideration. The appellate authority was directed to schedule a new date for a personal hearing for the appellant or their authorized representative, and after reviewing the appellant's grounds and documents, fresh orders were to be passed in accordance with the law.