2024 (5) TMI 967 - HC - GST

Tax Order Invalidated: Procedural Flaws Require Fresh Hearing and Proper Notice to Petitioner Under Principles of Natural Justice

HC found procedural defects in tax order due to lack of hearing. Directed Deputy Commissioner to set aside existing orders, issue notice to petitioner, ... Violation of principles of natural justice - due procedure as mandated by law not followed in issuing the impugned order - opportunity of hearing not provided before passing the impugned order - HELD THAT:- The records of the department were examined and that the documents with regard to the service of notice to the Petitioner could not be located. It is also not disputed that the impugned orders came be to be passed without an opportunity being granted to the Petitioner to submit documents and being heard. Let such notice be served to the Petitioner within a period of ten days from today. The same be appropriately replied by the Petitioner within a period of seven days thereafter. The petition is disposed off by way of remand. Issues Involved: The primary grievance is the lack of due procedure followed in issuing the impugned order, specifically the absence of a hearing for the Petitioner.Details of the Judgment:Issue 1: Lack of Due ProcedureThe Petitioners contended that the impugned order was issued without following the necessary procedure as mandated by law, as they were not given an opportunity to be heard before the order was passed.Issue 2: Absence of OpportunityThe Revenue's Counsel acknowledged that the impugned orders were issued without granting the Petitioner an opportunity to submit documents or present their case, as required by law.Decision:The Court acknowledged the lack of due process and instructed the Deputy Commissioner of Central Tax (GST) to set aside the impugned orders. The Deputy Commissioner was directed to issue a notice to the Petitioner for a hearing, request relevant documents, and subsequently conduct a personal hearing before passing any new orders within fifteen days.Conclusion:The Court disposed of the Petition based on the above observations, with all contentions of the parties expressly kept open for future consideration. No costs were awarded in this matter.