Order Overturned: No Personal Hearing Given, Mistaken Timber Import Assumption Corrected, VAT Exemption Upheld.

The Court set aside the impugned order, finding it violated principles of natural justice as the petitioner was not granted a personal hearing. The order incorrectly assumed the petitioner imported timber instead of supplying bone meal, which is VAT exempt. The attachment notice based on this order was lifted. The matter is remitted back to the respondent to allow the petitioner to file a reply and for a personal hearing to be conducted within three months. The writ petition is disposed of without costs, and the connected miscellaneous petition is closed.

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Issues:
The petitioner challenges the impugned order passed by the respondent on 13.10.2021, alleging violation of principles of natural justice and incorrect assumption of imported goods.

Analysis:

Violation of Principles of Natural Justice:
The petitioner, engaged in supplying bone meal, asserts they did not import any goods. The respondent issued a notice demanding details of imported goods, mistakenly assuming the petitioner imported timber. The impugned order was passed without granting a personal hearing to the petitioner, contrary to Section 75(4) of the Goods and Services Tax Act, 2017.

Misconception of Imported Goods:
Despite the petitioner's clarification that bone meal supply is VAT duty exempt, the respondent proceeded under the false belief of timber importation. The impugned order, lacking a personal hearing, was based on incorrect information obtained from the Customs Department.

Court Decision:
The Court finds the impugned order to be in violation of principles of natural justice and orders its set aside. The attachment notice issued based on the order is lifted. The matter is remitted back to the respondent, directing them to allow the petitioner to file a reply and conduct a personal hearing within three months. The writ petition is disposed of without costs, and the connected miscellaneous petition is closed.

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