2026 (2) TMI 1328 - HC - GST

Opportunity of hearing must be demonstrably afforded; absence of proof of online notice vitiates the adjudication and requires fresh adjudication.

Failure to demonstrate service of a hearing notice via the withdrawn online portal rendered the adjudication infirm for non compliance with the statutory ... Grant of opportunity of hearing u/s 75(4) - principles of natural justice - setting aside adjudication for breach of natural justice - remand for fresh adjudication - limitation defence to challenge adjudication proceedings - online notice via ACES-GST Application (CITRIX APPSTORE) - HELD THAT:- There is nothing before this court to come to the definite conclusion that any notice was indeed served upon the petitioners thereby affording them an opportunity of hearing. In terms of the provisions of Section 75(4) of the said Act of 2017, if an order having adverse consequence is contemplated, grant of an opportunity of hearing is mandatory. Since it has not been proved before this Court, to any decree of satisfaction, that the petitioners have been afforded an opportunity of hearing prior to the impugned decision being taken, therefore the said decision falls foul of the principles of natural justice as well as the provisions of Section 75(4) of the said Act of 2017 which grant statutory recognition to such principles. On such ground alone, the adjudication order dated December 14, 2023 stands set aside. The matter is remitted to the file of the Proper Officer for fresh adjudication. It is clarified that this court has not gone into the merits of the petitioner’s case and all points are left open to be decided by the adjudicating authority in accordance with law. The petitioner shall not be entitled to question the adjudication proceedings conducted by the Proper Officer in terms of this order on the ground of limitation unless such ground was available to the petitioner at the time when the notice to show cause was issued to the petitioner. Issues: Whether the adjudication order dated 14.12.2023, passed under the WBGST Act, 2017/CGST Act, 2017, is vitiated for want of opportunity of hearing in terms of Section 75(4) and principles of natural justice.Analysis: The impugned order was alleged to have been passed without affording the petitioners any personal hearing. The material before the Court shows no physical notice was served and the only asserted mode of notice was an online ACES-GST application which has been withdrawn since June 2025, leaving no record, screenshot, or proof of service. Section 75(4) of the said Act of 2017 mandates grant of opportunity of hearing before adverse orders are passed; this statutory requirement gives effect to the audi alteram partem principle. In the absence of satisfactory proof that the petitioners were afforded such an opportunity, the adjudication cannot be sustained on grounds of compliance with Section 75(4) or the principles of natural justice.Conclusion: The adjudication order dated 14.12.2023 is set aside for failure to afford the petitioners an opportunity of hearing in terms of Section 75(4) and the principles of natural justice; the matter is remitted to the Proper Officer for fresh adjudication with liberty to the petitioners to file replies within two weeks and with a mandatory opportunity of hearing if any adverse order is contemplated.