Natural justice defeated a GST penalty order passed without hearing, and the related time-bar dismissal also fell away.

A penalty order under the GST Act was unsustainable because it was passed without granting an opportunity of hearing, violating basic procedural fairness and natural justice; the order was therefore quashed and remanded for fresh consideration after hearing. The appellate order dismissing the challenge as time-barred also could not survive once the foundational penalty order was found invalid, so it too was set aside. The writ petition succeeded, and the matter was sent back to the authority for a fresh decision in accordance with law.

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Issues: (i) Whether the penalty order imposing Rs. 50,000 under section 125 of the GST Act was sustainable in the absence of an opportunity of hearing; (ii) Whether the appellate order dismissing the appeal as time-barred could survive after the foundational penalty order was found unsustainable.

Issue (i): Whether the penalty order imposing Rs. 50,000 under section 125 of the GST Act was sustainable in the absence of an opportunity of hearing.

Analysis: The order imposing penalty did not reflect that any opportunity of hearing had been granted before the adverse action was taken. An order passed without observance of this basic procedural safeguard could not be sustained.

Conclusion: The penalty order was quashed and the matter was remanded to the authority concerned for fresh consideration after giving an opportunity of hearing in accordance with law.

Issue (ii): Whether the appellate order dismissing the appeal as time-barred could survive after the foundational penalty order was found unsustainable.

Analysis: Once the underlying penalty order was set aside for want of hearing, the dismissal of the appeal on limitation could not be sustained in the present facts and was set aside along with the original order.

Conclusion: The appellate order was also quashed.

Final Conclusion: The writ petition succeeded, both impugned orders were set aside, and the matter was sent back for a fresh decision after affording hearing.

Ratio Decidendi: An adverse order passed without granting an opportunity of hearing cannot be sustained, and a consequential appellate dismissal founded on such an order also falls with it.

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