Tax Adjudication Order Quashed for Violating Natural Justice Principles, Petitioner Granted Fresh Hearing with Procedural Fairness

HC allowed the writ petition challenging the tax adjudication order, finding fundamental violations of natural justice. The court set aside the order dated 31.5.2021, remitted the matter back to the adjudicating authority, and directed a fresh hearing with proper opportunity for the petitioner to present their case, ensuring compliance with procedural fairness.

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Issues involved:
Challenge to adjudication order dated 31.5.2021; Appealability of the order; Expiry of period of limitation for appeal; Violation of natural justice principles; Flouting of rules of natural justice.

Adjudication Order Challenge:
The petitioner challenged the adjudication order dated 31.5.2021 passed by the Deputy Commissioner, State Tax, Sector-10 Prayagraj against them.

Appealability and Limitation:
The order was found to be appealable, but the period of limitation to file the appeal had expired.

Violation of Natural Justice:
Despite objections raised by the Standing Counsel, it was noted that there was a fundamental issue regarding the rights of the petitioner and the general scheme of the U.P. GST Act, 2017. The Court found that the adjudicating authority had violated natural justice principles by passing the impugned order before the dates fixed for reply and personal hearing.

Flouting of Rules:
The Court observed that the rules of natural justice had been flouted as the adjudication order was passed before the scheduled dates for reply and oral hearing, which was not permissible under the law.

Decision and Remittance:
The Court overruled the objections raised by the Standing Counsel and set aside the order dated 31.5.2021. The matter was remitted to the adjudicating authority to pass a fresh order in accordance with the law, ensuring adequate opportunity of hearing for the petitioner and recording reasons to address any objections raised.

Conclusion:
The writ petition was allowed, and the Registrar Compliance was directed to communicate the order to the Commissioner, Commercial Tax, U.P. Lucknow to prevent such practices in the future.

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