Procedural Fairness Prevails: GST Show-Cause Notice Invalidated Due to Insufficient Hearing Opportunity and Violation of Natural Justice

In a GST-related case, the HC found that principles of natural justice were violated when a show-cause notice was served on the hearing date, effectively denying a fair opportunity to be heard. The court set aside the Order-in-Original (OIO), directed a new personal hearing on 08.08.2024, and allowed the adjudicating authority discretion to fix additional dates if required. The writ petition was disposed of without commenting on case merits.

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Issues:
- Show-cause notice issued under Section 73(1) of the Central Goods and Services Act, 2017
- Failure to attend scheduled personal hearings
- Allegation of violation of principles of natural justice
- Interpretation of statutory provisions regarding personal hearings
- Setting aside the Order-in-Original (OIO) and fixing a new date for personal hearing

Analysis:
The judgment pertains to a show-cause notice issued under Section 73(1) of the Central Goods and Services Act, 2017 against the petitioner. The petitioner failed to attend scheduled personal hearings on 28.02.2024 and 07.03.2024. Despite requesting for another opportunity due to receiving the notice on the date of the hearing, the Order-in-Original (OIO) was passed on 23.04.2024. The petitioner argued for observance of principles of natural justice, contending that the respondents should have fixed a suitable next date for personal hearing. The learned Senior Standing Counsel for CBIC argued that the statutory provision regarding personal hearings was followed correctly.

The court considered the arguments and found that the petitioner's opportunity for personal hearing became illusory due to the notice being served on the same date as the hearing. The court noted that the respondents did not consider the petitioner's communication requesting another opportunity. In light of these circumstances, the court set aside the OIO and decided to fix a new date for personal hearing to ensure the principles of natural justice are upheld. The court directed the petitioner to appear before respondent No.1 on 08.08.2024 at 11.00 AM, which would be treated as the last personal hearing. The adjudicating authority was given the flexibility to fix a further date if needed.

The judgment concluded by disposing of the Writ Petition without expressing any opinion on the merits of the case and without imposing any costs. It was also mentioned that any pending interlocutory applications would stand closed.

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