Procedural Fairness Prevails: GST Tax Order Overturned Due to Inadequate Hearing, Mandating Fresh Proceedings Under Section 73

HC found a violation of natural justice in a GST tax proceeding. The court set aside an ex-parte order dated February 7, 2024, due to lack of proper hearing opportunity for the petitioner. The proper officer was directed to complete the proceeding under Section 73 by granting a hearing within six weeks, without examining the substantive merits of the show cause notice.

---

---

Issues involved: Challenge to order u/s 73 of WBGST Act, 2017 on grounds of natural justice violation.

Summary:
1. The writ petition challenged an order passed u/s 73 of the WBGST Act, 2017, alleging violation of natural justice principles.
2. Petitioner contended that despite recording the offer of personal hearing, the respondents disposed of the proceeding without granting the petitioner a personal hearing.
3. Show cause notice issued in November 2023 alleged tax and interest short payment for a specific period. Petitioner requested additional time to respond, but an ex-parte order was passed on February 7, 2024, as petitioner did not reply to discrepancies or appear before the officer.
4. Petitioner's advocate presented a screenshot showing no opportunity of hearing was offered, contrary to the order's recording.
5. State's advocate stated that petitioner was directed to appear on a different date, but could not explain the discrepancy in communication through the common portal.
6. After hearing both advocates and reviewing the evidence, the court considered the matter.
7. The court found that the petitioner was not afforded a hearing despite the possibility of an adverse decision, as required by Section 75(4) of the Act.
8. Due to non-compliance with the Act regarding the opportunity of hearing, the order dated February 7, 2024, was set aside and quashed.
9. The proper officer was directed to complete the proceeding under Section 73 by granting a hearing to the petitioner within six weeks.
10. The court clarified that it did not assess the merits of the show cause notice.
11. The writ petition was disposed of with the provided observations and directions.
12. All parties were instructed to act based on the server copy of the order downloaded from the Court's official website.

---