Where orders passed in violation of statutory requirements such order is liable to be quashed.

[CA Akash Phophalia]

Statutory procedural compliance as enumerated in the provisions of law are mandatory. Non-following of same results in violation of canons of law and thereby resulting in quashing of the proceedings carried upon.

In case M/S. SERAJUDDIN AND CO. VERSUS UNION OF INDIA, STATE OF ODISHA, COMMISSIONER OF CT, ODISHA, STATE TAX OFFICER, CT AND GST CIRCLE, BARBIL [2020 (1) TMI 931 - ORISSA HIGH COURT], the assessee was issued show cause notice and was asked to file its reply by the next day and revert if it needs to be heard in person. The assessee submitted its reply immediately to make available four weeks time to submit its reply and it needs personal hearing. However, the authority passed the order within 7-8 days of SCN without accepting the time requested by the assessee to submit its reply and without giving it opportunity of being heard.

It was held that where an assessee, chargeable with tax and penalty makes a request in writing for opportunity of hearing, such an opportunity should be granted to him. However, in this case the order was passed without granting the same. Further, despite request made by the assessee for grant of additional time for filing reply to the impugned show cause notice, the order was passed by the adjudicating authority without giving any additional time of hearing. Hence the order was passed in violation of the statutory requirements as enumerated in the law and hence quashed and the matter was remanded consequently.

Key observations

That where the law provides for three times adjournments during proceedings the assessee must be provided the same considering the principle of natural justice. Further, where the assessee requests for additional time for submission of reply to the show cause notice the reasonable requisite time must be granted to him. Additionally, where the assessee requests for personal hearing during the proceedings the opportunity of being heard must be given to him. Moreover, where the canons of law and principle of natural justice are not followed such orders are liable to be quashed. Lastly, where the statutory time limits as provided in the related provisions of Section 73 and 74 of the CGST Act, 2017 did not end what makes the adjudicating authority passing the order hastily.