Judicial Intervention Nullifies Order Due to Procedural Defect in Notice Service, Emphasizing Importance of Accurate Communication

HC Bombay quashed an Order-in-Original (O-I-O) due to improper service of notice at an incorrect address. The court found significant discrepancies in the address used for correspondence, violating principles of natural justice. The matter was remanded for reevaluation, with directions to serve future notices at the correct address, ensuring proper legal communication and procedural fairness.

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Issues: Challenge of show cause notice and Order-in-Original (O-I-O) based on principles of natural justice due to incorrect address for service.

In this judgment by the High Court of Bombay, the petitioner challenged a show cause notice and subsequent Order-in-Original (O-I-O) dated 27 February 2021 under Article 226 of the Constitution of India primarily on the ground of principles of natural justice. The petitioner contended that the notices were served at an incorrect address, which was not the petitioner's address, rendering the O-I-O invalid. The respondents argued that the notices were served at the address mentioned in the show cause notice and O-I-O, which were not returned, implying proper service. The court examined the documents presented during the hearing and noted discrepancies in the addresses used for correspondence. The petitioner's correct address, as recorded by the Directorate General of GST Intelligence, was "A/3, Ahmedabad Street, Carnac Bunder, Mumbai - 400 009," which was also confirmed by the petitioner. However, the personal hearing notice and O-I-O were addressed to a different location with incorrect details, raising doubts about proper service.

The court observed that the address used for sending the personal hearing notice and O-I-O contained a wrong pin code and road details, deviating from the petitioner's known address. Despite the notices not being returned, the court found it questionable how they could be considered as served on the petitioner at the correct address. The respondents failed to provide evidence linking the incorrect address to the petitioner, leading to doubts about the validity of the service. Consequently, the court, in the interest of justice and due to the lack of proof of service at the correct address, quashed the impugned O-I-O dated 27 February 2021 and remanded the matter back to the respondent for reevaluation of the show cause notice. The respondents were directed to serve all future notices and correspondence to the petitioner at the correct address of "M/s. Champion Steel Industries (P) Ltd., A/3, Ahmedabad Street, Carnac Bunder, Mumbai - 400 009," along with the registered email address. The court made the rule absolute in the mentioned terms and disposed of the petition without any order as to costs.

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