Natural Justice Violated: Tax Order Quashed as Commissioner Denied Petitioner Fair Hearing During Lockdown Period

HC found a breach of natural justice principles in a tax order. The Commissioner passed an adverse order without providing the petitioner a proper opportunity to be heard, especially during the lockdown period. The HC quashed the original order, directed the petitioner to submit a reply within three weeks, and instructed the respondent to pass fresh orders after a fair hearing.

---

---

Issues involved:
The primary contention is the breach of principles of natural justice in the order passed by the Commissioner, CGST & Central Excise, Belapur.

Issue 1: Breach of principles of natural justice
The petitioner challenged the order-in-original dated 13 May, 2021, alleging a violation of natural justice principles. The petitioner was not granted a proper opportunity to be heard before the adverse order was passed. The order mentioned dates for personal hearings, but there was no evidence that the petitioner was actually heard on those dates. Moreover, the order was issued during a lockdown period, and the petitioner claimed they were not served the order until February 2023. The High Court found these arguments valid, emphasizing the importance of following due process before passing adverse orders. The Court noted that the impugned order was passed in breach of the principles of natural justice, leading to its quashing and setting aside.

In conclusion, the High Court, in light of the breach of natural justice principles, quashed the impugned order and remanded the proceedings to the respondent for fresh orders after giving the petitioner a proper opportunity to be heard. The petitioner was directed to submit a reply to the show cause notice within three weeks, and the respondent was instructed to pass appropriate orders within three weeks after the hearing. The Court kept all contentions open and disposed of the petition accordingly, without imposing any costs.

---