Court quashes tax order over fairness breach, directs fresh hearing The Court quashed the Order-in-Original passed by the Commissioner of CGST and Central Excise due to a breach of natural justice principles. The ...
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Court quashes tax order over fairness breach, directs fresh hearing
The Court quashed the Order-in-Original passed by the Commissioner of CGST and Central Excise due to a breach of natural justice principles. The Petitioner, facing challenges during the lockdown, deposited dues with the Court to demonstrate good faith. The Court restored the proceedings to the Commissioner, directing the Petitioner to appear for a suitable hearing date. The decision was based on procedural fairness, leaving the proceedings to be decided on their merits.
Issues Involved: Challenge to Order-in-Original dated 24 December 2020 passed by the Commissioner of CGST and Central Excise, Mumbai on grounds of breach of principles of natural justice.
Summary: The Petitioner challenged the Order-in-Original passed by the Commissioner, citing a breach of natural justice principles. The Commissioner noted that despite virtual hearing dates being set, the Petitioner did not attend, leading to the imposition of Central Excise duty and penalty. The Petitioner claimed non-receipt of hearing notices due to lockdown restrictions. The Respondent stated that notices were sent via registered post but returned as 'left'. The Petitioner argued that the acknowledgment for virtual hearing notices was not provided in the reply. Reference was made to Section 37C of the Central Excise Act, 1944 regarding service of decisions and orders.
The Court considered the challenges faced during the lockdown period and the issues with physical service of notices. The Petitioner, to demonstrate good faith, deposited a portion of the dues with the Court. After assessing the circumstances, the Court quashed the impugned order, restoring the proceedings to the Commissioner's file. The deposited amount was transferred to the adjudicating authority, and the Petitioner was directed to appear before the Commissioner for a suitable hearing date. The Court clarified that the decision was based on the breach of natural justice principles and not on the merits, leaving the proceedings to be decided on their own merits.
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