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Statutory authority's final order set aside for denying extension and personal hearing despite sufficient cause shown The Calcutta HC set aside a final order passed by a statutory authority for violating principles of natural justice. The petitioner had sought extension ...
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Statutory authority's final order set aside for denying extension and personal hearing despite sufficient cause shown
The Calcutta HC set aside a final order passed by a statutory authority for violating principles of natural justice. The petitioner had sought extension to file response and for personal hearing, but the authority passed the order without considering the extension application or providing opportunity to be heard. The court held that despite the petitioner showing sufficient cause, the authority's failure to grant extension or personal hearing constituted colorable exercise of power. The court ruled that an appeal cannot substitute for an ex-parte order where the petitioner's defense was not on record, and violation of natural justice principles removed the bar of alternative remedy for writ jurisdiction.
Issues involved: Challenge to order under Section 73(9) of the GST Act, 2017 for not granting extension for response and personal hearing.
Summary: The petitioner challenged an order issued under Section 73(9) of the GST Act, 2017, contending that despite seeking an extension for response due to Durga Puja and business closure, the order was passed without considering their request. The petitioner claimed that only one extension was sought, while the law allows up to three extensions. The respondent argued that the petitioner had sufficient time to respond and has the option to appeal, hence the writ petition should not be entertained.
Upon review, the Court noted that the petitioner had shown sufficient cause for an extension as per Section 75(5) of the GST Act, which allows adjournment for valid reasons. The Court found that the authority should have considered the extension request before passing the final order, as passing the order without granting an extension or personal hearing seemed like a misuse of power. The Court emphasized that an appeal cannot replace a fair consideration of the petitioner's response, especially when natural justice principles are violated.
Consequently, the Court set aside the impugned order, directing the petitioner to file a response by a specified date and the respondent to schedule a personal hearing thereafter. If the petitioner fails to respond, the respondent is permitted to proceed as deemed appropriate. The writ petition was disposed of with these directions, and no costs were awarded.
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