Order set aside for denying petitioner access to documents used against him, violating natural justice principles

The Bombay HC set aside an order dated 30 April 2024 due to violation of natural justice principles. The petitioner was not provided copies of documents that formed substantial basis of the impugned order, nor was he informed in the show cause notice that such documents would be used against him. The petitioner only became aware of these documents after receiving the order. The HC remanded the matter for fresh decision, directing respondents to furnish all relevant documents to the petitioner before proceeding. The petition was disposed of by way of remand without examining merits.

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Issues:
Challenge to Order-in-Original dated 30 April 2024 by Assistant Commissioner of State Tax (State GST); Allegation of violation of principles of natural justice and fair play in the impugned order.

Analysis:
The petitioner challenged the Order-in-Original dated 30 April 2024, claiming a violation of natural justice and fair play due to reliance on undisclosed documents. The petitioner argued that the impugned order extensively referred to specific documents not provided earlier, leading to a breach of natural justice. The respondent argued that the petitioner had the opportunity to establish the genuineness of transactions with a supplier highlighted in the show cause notice. The court noted that certain key documents were crucial to the impugned order but were not disclosed to the petitioner initially, which constituted a failure of natural justice.

The court observed that the reliance on undisclosed documents without prior notice to the petitioner was a violation of natural justice. The court emphasized the importance of providing copies of all relevant documents to the petitioner and allowing a reasonable opportunity to respond. Consequently, the impugned order dated 30 April 2024 was set aside, and the matter was remanded to the adjudicating officer for a fresh decision following due process. The court directed the respondents to furnish the undisclosed documents and any other material they intended to rely upon to the petitioner for a fair hearing.

The court clarified that the decision was solely based on the failure of natural justice and did not delve into the merits of the case. All contentions on merits were left open for future consideration. The Rule was made absolute in favor of the petitioner, and the petition was disposed of without any cost order. Any interim orders were vacated, and related applications were disposed of accordingly. The judgment highlighted the significance of upholding principles of natural justice and fair play in administrative proceedings, ensuring transparency and a fair opportunity for all parties involved.

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