High Court Nullifies Tax Order, Mandates Proper Notice and Fair Hearing Under HPGST Act Provisions HC set aside an order under HPGST Act due to procedural irregularities. The Advocate General acknowledged the error and proposed treating the impugned ...
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High Court Nullifies Tax Order, Mandates Proper Notice and Fair Hearing Under HPGST Act Provisions
HC set aside an order under HPGST Act due to procedural irregularities. The Advocate General acknowledged the error and proposed treating the impugned order as a Show Cause Notice. The court directed the respondent to grant the petitioner an opportunity to respond, conduct a personal hearing, and pass a reasoned order within four weeks, ensuring compliance with principles of natural justice.
Issues: Violation of natural justice due to absence of prior show cause notice as mandated in Section 74 (1) of the HPGST Act.
Analysis: The petitioner challenged an order dated 20.06.2023, passed by the second respondent under Section 74 (9) of the HPGST/CGST Act, 2017, which was purportedly a summary of a Show Cause Notice. The order contained a table indicating tax liability and a direction to pay the said liability, raising concerns about the absence of a prior show cause notice as required by law. The petitioner contended that the impugned order violated the principles of natural justice due to this deficiency.
The Advocate General representing the respondents acknowledged the error in the order, clarifying that the second respondent had intended to issue a Show Cause Notice but mistakenly included a determination of tax liability in the document. He proposed treating the impugned order as a Show Cause Notice, granting the petitioner an opportunity to respond, after which a reasoned order would be passed in compliance with the law.
In light of the submissions made by the Advocate General, the High Court set aside the impugned order dated 20.06.2023 and directed it to be treated as a Show Cause Notice. The petitioner was given four weeks to submit a reply, following which a personal hearing would be conducted by the second respondent. Subsequently, a reasoned order would be passed and communicated to the petitioner, ensuring compliance with legal procedures and principles of natural justice.
The Court disposed of the Writ petition along with any pending applications, without imposing any costs on either party involved in the matter.
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