Tax Appeal Upheld: Ex-Parte Order Overturned, Appellants Granted Opportunity to Respond and Seek Fair Reassessment

HC allowed appeal challenging tax order for April 2018-March 2019. Ex-parte order was set aside and matter restored to show-cause notice stage. Appellants directed to submit reply within 15 days and adjudicating authority instructed to pass fresh orders within four weeks after personal hearing. Court emphasized consistent approach based on previous assessment year's precedent.

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Issues:
Challenge to order under WBGST Act/CGST Act, 2017 for tax period April 2018 to March 2019. Appellate remedy under section 107 of the Act. Ex-parte order due to non-appearance. Request for one more opportunity based on previous assessment year's decision. Application of res judicata principle. Setting aside the order and restoration to show-cause notice stage.

Analysis:
The High Court of Calcutta heard an intra-Court appeal against an order dated August 28, 2024, pertaining to a challenge under the WBGST Act/CGST Act, 2017 for the tax period April 2018 to March 2019. The appellants had not availed the appellate remedy under section 107 of the Act, leading to the unsuccessful writ petition. The Single Bench directed the appellants to exhaust the appellate remedy, prompting the appeal before the Court.

Upon reviewing the case, the Court noted that the appellants failed to respond to the show-cause notice or attend the personal hearing, resulting in the proceeding being completed on a best judgment basis. The appellants argued for another opportunity citing similar facts in a previous assessment year where proceedings were dropped by the authority. They relied on the principle of res judicata, emphasizing a consistent approach by the department based on previous decisions.

Citing the Supreme Court's decision in M/s. Radhasoami Satsang case, the Court acknowledged the importance of maintaining consistency in decisions across assessment years if the facts remain unchanged and previous decisions are unchallenged. Consequently, the Court allowed the appeal, setting aside the previous order and restoring the matter to the show-cause notice stage for the appellants to present their case.

The appellants were directed to submit their reply within 15 days, followed by a personal hearing without seeking adjournment. The adjudicating authority was instructed to pass fresh orders within four weeks of the conclusion of the personal hearing. No costs were awarded, and the Court emphasized the prompt issuance of a certified copy of the order upon compliance with legal formalities. The judgment was delivered by Hon'ble Chief Justice T.S. Sivagnanam and Hon'ble Mr. Justice Hiranmay Bhattacharyya.

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