2022 (12) TMI 86 - HC - GST

High Court Quashes GST Notice, Orders Fresh Hearing and Potential Release of Goods Under Legal Provisions

HC allowed the writ petition challenging a GST notice, setting aside the impugned order and remanding the matter back to the adjudicating authority. The ... Requirement of a speaking order - Non-speaking order - Non-application of mind in issuance of notice - Opportunity of hearing - Remand for fresh consideration - Release of seized goods and vehicle pending adjudication - Section 129(3) of the WBGST ActRequirement of a speaking order - Non-speaking order - Non-application of mind in issuance of notice - Opportunity of hearing - Remand for fresh consideration - Release of seized goods and vehicle pending adjudication - Section 129(3) of the WBGST Act - Impugned order dated 4th November, 2022 under Section 129(3) of the WBGST Act set aside and matter remanded for fresh adjudication with directions to afford hearing and consider release of goods and vehicle. - HELD THAT: - The Court found that the adjudicating order was non-speaking and that the show-cause notice exhibited indications of non-application of mind (the notice dated 27th October, 2022 calling the petitioner to appear on a date already expired). In view of these defects, the impugned order dated 4th November, 2022 was set aside. The matter was remanded to the adjudicating authority to pass a fresh, reasoned order after giving the petitioner an opportunity of hearing and permitting the petitioner to file a fresh representation against the show-cause notice. The petitioner is directed to file such representation within two weeks from the date of the order of remand, and the respondent authority is directed to dispose of the representation within two weeks from receipt. The respondents are also directed to consider the petitioner's prayer for release of the goods and vehicle in accordance with law while adjudicating afresh.Impugned order set aside; matter remanded for fresh speaking order after hearing and fresh representation (filed within two weeks), respondent to dispose within two weeks of receipt; prayer for release of goods and vehicle to be considered in accordance with law.Final Conclusion: Writ petition disposed by setting aside the impugned order and remanding the matter for fresh adjudication with directions to afford hearing, permit a fresh representation within two weeks, decide it within two weeks, and consider the petitioner's request for release of the goods and vehicle in accordance with law. Issues:Challenge to impugned notice and subsequent order under Section 129(3) of the WBGST Act for being non-speaking and non-application of mind. Request for release of goods and vehicle due to breakdown and time constraint.Analysis:The petitioner challenged the impugned notice dated 27th October, 2022, and subsequent order dated 4th November, 2022 under Section 129(3) of the WBGST Act, alleging that they were non-speaking and showed a lack of application of mind. The petitioner contended that the notice was issued on 27th October, 2022, with a requirement to appear before the adjudicating authority on 3rd October, 2022, which had already passed. Additionally, the petitioner sought the release of the goods and vehicle in question, citing a breakdown of the vehicle within a period of less than 24 hours.The High Court, after considering the facts and circumstances of the case, set aside the impugned order dated 4th November, 2022, and remanded the matter back to the adjudicating authority for a fresh speaking order. The court directed the adjudicating authority to provide an opportunity for a hearing and allow the petitioner to make a fresh appropriate representation against the show-cause notice dated 27th October, 2022. The petitioner was instructed to file objections within two weeks, and the respondent was required to dispose of the objections within two weeks from the date of receipt. Furthermore, the respondents were directed to consider the prayer for the release of the goods and vehicle in accordance with the law.In conclusion, the writ petition, numbered WPA 24558 of 2022, was disposed of by the High Court with the aforementioned observations and directions. The judgment emphasized the importance of a speaking order, proper application of mind, and adherence to procedural requirements in matters related to the WBGST Act.