2024 (12) TMI 869 - HC - GST

Challenge to SCN issued by the 4th Respondent - non-consideration of the Petitioner s plea - violation of principles of natural justice - HELD THAT - It appears that the petitioner did not file a clear reply to the show-cause notice dated 21 September 2023. However, the Petitioner did point out to the fourth Respondent that a Petition was filed to challenge the show-cause notice. It is not required to go into the merits of the rival contentions but hold that the contentions based upon the above two judgments should have been considered one way or the other by the 4th Respondent before making the impugned order. The impugned order is not entirely clear whether the Petitioner filed no reply or whether the reply filed was not found to be satisfactory. In any event, stating that the reply was unsatisfactory does not make a reasoned order. To that extent, there is a violation of natural justice because the duty to give reasons is also one of the facets of natural justice. The impugned order dated 28th December 2023 without relegating the Petitioner to avail of the alternate remedy given in the peculiar facts and the breach of natural justice - Petition allowed by way of remand.

Summary

The High Court Bombay set aside the order dated 28th December 2023, remanded the matter to the 4th Respondent, and directed the Petitioner to file a detailed response within two weeks. The 4th Respondent must consider the response, grant a hearing to the Petitioner, and dispose of the show-cause notice within three months. The court allowed the Petitioner to challenge the order based on natural justice and non-consideration of plea. The rule was made absolute without any costs.