2025 (3) TMI 1297 - HC - GST

Violation of principles of natural justice - SCN and the order impugned has been passed without application of mind and without any legal basis - HELD THAT - Admittedly notice under Section 61 of the Act was issued to the petitioner pointing out the discrepancies when the same was not responded show cause notice incorporating the said deficiencies was issued to which a reply (Annexure No. 6) dated 18.12.2023 was filed. A perusal of the reply indicates that for the various issues indicated in the show cause notice apparently cursory indications were made and the copies of balance-sheet trading account and profit and loss account were annexed wherein no details/particulars of any nature relevant to the discrepancy pointed out were available/had any support to the contention raised in reply to the show cause notice. The Authority taking into consideration the plea raised in the reply to the show cause notice passed the order dated 22.04.2024. The nature of order which has been passed it cannot be said that the same is non-speaking as the contentions raised have been considered and not accepted by the Authority - The plea regarding violation of principles of natural justice looses significance once petitioner was issued notice for date of hearing dated 09.04.2024 (Annexure No. 8) and petitioner chose not to appear. Once by passing of the order the petitioner was aggrieved it was required of the petitioner to question its validity by filing the appeal. Apparently no appeal has been filed and no reason is forthcoming. Filing of the writ petition wherein apparently petitioner is seeking to question the merit of the order dated 22.04.2024 and none of the grounds for invoking jurisdiction under Article 226 of the Constitution are available in the present case cannot be countenanced. Conclusion - There is no violation of the principles of natural justice the petitioner is provided with an opportunity to be heard and the writ petition is not maintainable due to the availability of an alternative remedy that was not pursued. Petition dismissed.

ISSUES PRESENTED and CONSIDERED

The core legal issues considered in this judgment include:

Whether the order passed by the Deputy Commissioner, State GST, Kanpur, demanding Rs. 1,73,686/- from the petitioner, was made in violation of the principles of natural justice.
Whether the petitioner was provided with an adequate opportunity to be heard before the order was passed.
Whether the petitioner had an alternative remedy available and failed to utilize it before filing the writ petition.
Whether the writ petition under Article 226 of the Constitution is maintainable in the context of the present case.

ISSUE-WISE DETAILED ANALYSIS

Violation of Principles of Natural Justice

Relevant legal framework and precedents: The principles of natural justice require that a party be given a fair opportunity to present their case and respond to any evidence against them. This typically includes the right to a hearing.
Court's interpretation and reasoning: The Court noted that a notice under Section 61 of the Goods and Services Tax Act, 2017, was issued to the petitioner, which was not responded to. Subsequently, a show cause notice under Section 73 was issued, to which the petitioner replied. The Court found that a reminder notice was issued for a personal hearing on 09.04.2024, which the petitioner ignored.
Key evidence and findings: The petitioner's failure to appear for the hearing despite being notified was critical. The Court found that the petitioner had been given an opportunity to be heard but chose not to avail it.
Application of law to facts: The Court applied the principles of natural justice and found that the petitioner was given an opportunity to present their case but failed to do so. Therefore, the claim of violation of natural justice was unfounded.
Treatment of competing arguments: The petitioner's argument that there was a lack of opportunity was dismissed as the Court found evidence to the contrary.
Conclusions: The Court concluded that there was no violation of natural justice as the petitioner was given an opportunity to be heard.

Alternative Remedy and Maintainability of Writ Petition

Relevant legal framework and precedents: The legal principle is that if an alternative remedy is available, a writ petition is generally not maintainable unless exceptional circumstances exist.
Court's interpretation and reasoning: The Court emphasized that the petitioner had an alternative remedy in the form of an appeal, which was not pursued within the statutory period.
Key evidence and findings: The petitioner did not provide any reason for not filing an appeal and instead filed a writ petition after more than ten months.
Application of law to facts: The Court applied the principle that a writ petition should not be entertained when an alternative remedy exists and has not been exhausted.
Treatment of competing arguments: The petitioner's failure to utilize the alternative remedy was a significant factor in the Court's decision to dismiss the writ petition.
Conclusions: The Court concluded that the writ petition was not maintainable due to the availability of an alternative remedy that was not utilized.

SIGNIFICANT HOLDINGS

Preserve verbatim quotes of crucial legal reasoning: "Once by passing of the order, the petitioner was aggrieved, it was required of the petitioner to question its validity by filing the appeal."
Core principles established: The Court reinforced the principle that the existence of an alternative remedy precludes the filing of a writ petition unless exceptional circumstances justify such a filing.
Final determinations on each issue: The Court determined that there was no violation of the principles of natural justice, the petitioner was provided with an opportunity to be heard, and the writ petition was not maintainable due to the availability of an alternative remedy that was not pursued.

The petition was ultimately dismissed as lacking substance, with the Court finding no reason to interfere with the order passed by the Deputy Commissioner, State GST, Kanpur.

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