GST Order Invalidated Due to Procedural Lapse: Firm Granted Opportunity to Present Arguments in Fresh Hearing

HC found a procedural error in the GST order against the petitioner-firm involved in road construction. The court quashed the original order dated 27.12.2021 and directed respondent to issue a fresh order after providing the petitioner an opportunity to be heard. The petitioner did not challenge the constitutional validity of the GST provisions, and the case was disposed of with instructions for proper administrative review.

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Issues involved:
The validity of Section 16(2)(aa), Section 16(2)(c) of Central Goods and Service Tax Act, 2017 and Rule 36(4) of the Central Goods and Service Tax Rules, 2017 challenged by the petitioner-firm. The order dated 27.12.2021 passed by respondent No.2 regarding Input Tax Credit claimed by the petitioner is also challenged.

Validity of Section 16(2)(aa), Section 16(2)(c) and Rule 36(4):
The petitioner-firm, engaged in road construction business, challenged the validity of certain sections of the Central Goods and Service Tax Act, 2017 and related rules. The petitioner requested certain materials from a supplier on which GST was payable. Despite the supplier having already paid GST on the supplied items, respondent No.2 ordered the return of Input Tax Credit claimed by the petitioner. Respondent's counsel admitted the oversight and requested a remand for fresh adjudication considering the GST payment by the suppliers. The petitioner, not pressing for a declaration of unconstitutionality of the provisions, sought the quashing of the impugned order dated 27.12.2021 and a direction for a fresh order with a hearing opportunity. Consequently, the order dated 27.12.2021 was quashed, and respondent No.2 was directed to pass a fresh order after granting a hearing to the petitioner. The writ petition was disposed of accordingly.

Stay petition:
The stay petition was also disposed of in conjunction with the main writ petition.

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