Simultaneous GST Notice and Order Quashed for Violating Natural Justice Principles

The HC quashed an order under GST Act that was issued on the same day as the notice requiring explanation and appearance. The court found this violated principles of natural justice as the petitioner company was not afforded an opportunity of hearing before the decision was made. The petition was allowed, with directions for the petitioner to appear before the authority within three weeks for a fresh decision after proper consideration of materials and compliance with legal procedures.

---

---

Issues: Breach of principles of natural justice in passing an order without affording an opportunity of hearing.

Analysis:
- The petitioners, a private limited company engaged in the business of Flexible Packaging materials, received a Notice under section 129(3) of the Central Goods and Services Tax Act, 2017, and the State/Union Territory Goods and Services Tax Act, 2017, dated 06/01/2022, calling for an explanation regarding potential penalty imposition and requiring appearance before the authority on 13/01/2022.
- An order was issued on the same day as the Notice, without granting an opportunity of hearing to the petitioner, which was deemed a breach of principles of natural justice by the petitioners.
- The petitioners argued for the quashing of the impugned order dated 06/01/2022, citing the lack of a hearing opportunity before the authority's decision.
- The learned advocate for the petitioners highlighted the procedural irregularity in the authority's actions, emphasizing the importance of adhering to principles of natural justice.
- The learned AGP opposed the petition, but the court, after hearing both sides, found merit in the petitioners' argument regarding the breach of natural justice principles.
- Consequently, the High Court allowed the petition, quashed the impugned order dated 06/01/2022, and directed the petitioner to appear before the authority within three weeks for a fresh decision in compliance with the law and after considering any relevant material provided by the petitioner.

---