Post-decisional hearing entitlement where fresh documents show a prima facie case; reconsideration stays enforcement briefly.

A taxpayer demonstrating a prima facie case and possessing documents not earlier placed before the adjudicating authority is entitled to file a representation with supporting documents and receive a post-decisional hearing; the adjudicating authority must reconsider the claim within prescribed time limits. To preserve rights during reconsideration, the existing adjudicating order is to remain in abeyance for a limited period and garnishee proceedings stayed, subject to the authority's power to affirm the original decision if the submissions are legally or factually unacceptable. Time limits for filing and decision are specified.

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Issues: (i) Whether the petitioner, having demonstrated a semblance of acting on behalf of the Kolkata Municipal Corporation, should be permitted to approach the proper officer with supporting documents and be granted a post-decisional hearing against the order dated 21 January 2025; (ii) Whether the impugned order dated 21 January 2025 and garnishee proceedings based thereon should be kept in abeyance/stayed pending the adjudicating authority's reconsideration.

Issue (i): Whether the petitioner should be allowed to file a representation with the proper officer with supporting documents and be granted a post-decisional hearing.

Analysis: The petitioner produced a letter dated 7 March 2019 and a possession certificate in court which, while not part of the adjudicating record, indicate a prima facie case that the petitioner may have collected parking charges on behalf of the Kolkata Municipal Corporation. The adjudicating order criticized the absence of an agreement on record. Given the petitioner's assertion and the existence of documents not previously placed before the adjudicating authority, procedural fairness requires an opportunity to present such documents and obtain a hearing before final adverse consequence is enforced.

Conclusion: The petitioner is granted liberty to approach the proper officer within two weeks with all supporting documents and is entitled to a post-decisional hearing; this conclusion is in favour of the assessee.

Issue (ii): Whether the impugned adjudicating order and garnishee proceedings should be kept in abeyance or stayed pending reconsideration.

Analysis: To preserve the petitioner's rights while the proper officer reconsiders the claim on the basis of fresh documents and submissions, the adjudicating order is directed to remain in abeyance for a limited period and garnishee proceedings are stayed. The adjudicating authority retains the discretion to affirm its earlier conclusion if the documents and submissions are found unacceptable in law or fact; conversely, if the authority finds no liability, it must refrain from enforcing the impugned order. Time limits for filing representation and for the authority to decide are prescribed.

Conclusion: The impugned order dated 21 January 2025 shall remain in abeyance for four weeks and garnishee proceedings shall remain stayed for eight weeks; this conclusion is partly in favour of the assessee.

Final Conclusion: The adjudicating authority must reconsider the petitioner's claim on the basis of documents to be filed within the specified period and grant a post-decisional hearing; enforcement measures are temporarily suspended to enable such reconsideration.

Ratio Decidendi: Where a taxpayer demonstrates a prima facie case and possesses documents not placed before the adjudicating authority, fairness requires permitting a representation with supporting documents and granting a post-decisional hearing, and temporarily staying enforcement pending timely reconsideration by the proper officer.

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