Judicial Intervention Nullifies Ex Parte GST Order Due to Lack of Reasoned Findings Under Section 107(12)

HC allowed the writ petition challenging the ex parte order under GST Act. Despite multiple hearing opportunities, the appellate authority's order was found non-compliant with Section 107(12) as it lacked reasoned findings. The Court set aside the order and directed fresh adjudication with a speaking order addressing the appeal's merits.

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The Calcutta High Court, presided by Raja Basu Chowdhury, J., addressed a writ petition challenging the appellate authority's order dated 31st December 2024 under Section 107 of the WBGST/CGST Act, 2017. The petitioner contended that the appellate authority decided the matter ex parte without granting a personal hearing, especially considering the petitioner's advanced age (73 years). Further, reliance was placed on Section 107(12) of the Act, asserting that the appellate authority must deliver a "speaking order" adjudicating the appeal on merits irrespective of the petitioner's presence, citing Madhusudan Banik v. State of West Bengal, 2025 (4) TMI 94.The CGST authorities countered that the petitioner was given multiple opportunities for personal hearing but failed to appear, negating any claim of denial of natural justice. The Court found that although the petitioner did not avail the hearing opportunities, the impugned order was an unreasoned, non-speaking order violating Section 107(12). Consequently, the Court held that the order "cannot be sustained," set it aside, and remanded the matter for fresh adjudication on merits with compliance to statutory requirements.The writ petition was disposed of with directions for a reasoned order on merit by the appellate authority.

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