Tax Order Invalidated for Procedural Unfairness: Hearing Rights Upheld and Fresh Opportunity Mandated Under GST Regulations

HC quashed tax order under UP GST Act due to violation of natural justice principles. The court found the order invalid for denying personal hearing to the petitioner. HC directed the tax authority to provide a fresh opportunity for hearing, file a reasoned order within two months, and ensure fundamental principles of fair adjudication are followed.

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Issues:
Violation of natural justice in passing the impugned order under the Uttar Pradesh Goods and Services Tax Act, 2017.

Analysis:
The judgment pertains to a writ petition under Article 226 of the Constitution of India challenging an order passed by the respondent under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. The court noted that the factual matrix resembled a previous judgment of a coordinate Bench in Mahaveer Trading Company vs. Deputy Commissioner State Tax. The court emphasized the importance of offering a personal hearing before passing any adverse order in an adjudication proceeding. It was highlighted that denying the opportunity of personal hearing would violate fundamental principles of natural justice. The court clarified that even if the noticee waives the right to a personal hearing or fails to avail it, the opportunity should not be denied in adjudication proceedings. The judgment emphasized that the impugned order was passed in gross violation of natural justice principles and could not be sustained. The court also mentioned that the self-imposed bar of an alternative remedy could not be applied in such cases, as it would be counterproductive to the interest of justice. The court directed the concerned officer to grant the petitioner another opportunity to file a fresh reply, fix a date of hearing, and pass a reasoned order within two months from the date of the judgment.

In conclusion, the High Court quashed and set aside the impugned order passed by the Deputy Commissioner under the State Tax Act, directing a fresh opportunity for the petitioner to present their case. The judgment highlighted the significance of adhering to natural justice principles in adjudication proceedings and emphasized the importance of offering a personal hearing before passing adverse orders. The court's decision aimed to ensure a fair and just process for the petitioner within a specified timeline.

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