High Court grants relief against tax penalty under GST Act, 2017 due to violation of natural justice.

The High Court allowed the petitioner's challenge against the imposition of tax and penalty under the GST Act, 2017. The Court found that dismissing the appeal without hearing the appellant violated principles of natural justice. The Court directed the petitioner to be given a chance to appear before the appellate authority for a fresh hearing, setting aside the previous order. The decision did not address the case's merits but ensured the petitioner's right to a fair hearing.

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Issues:
Challenge to imposition of tax and penalty under GST Act, 2017
Dismissal of appeal without hearing the appellant

Analysis:
The petitioner filed a petition under Article 226 challenging the imposition of tax and penalty under the GST Act, 2017 through orders dated 03.12.2019 and 16.03.2020. The petitioner's appeal under Section 107 of the GST Act, 2017 was rejected without hearing the appellant due to the absence of the petitioner's counsel during the hearing. The petitioner claimed that they were unaware of the dismissal of the appeal as it was not communicated by their local counsel. The High Court noted that the appeal was dismissed without giving the petitioner an opportunity to be heard, which was a violation of principles of natural justice.

The High Court reviewed the facts and directed that the petitioner be given a chance to appear before the appellate authority on 29.10.2021. The appellate authority was instructed to provide a hearing to the petitioner and issue a fresh order, disregarding the previous order dated 16.03.2020. The Court clarified that its decision did not imply any judgment on the case's merits. The writ petition was disposed of with this direction, ensuring that the petitioner received a fair opportunity to present their case before the appellate authority.

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