Natural justice in GST proceedings: ineffective notice and no personal hearing can justify writ interference despite an alternate appeal.

In GST proceedings, ineffective service of a show cause notice and denial of personal hearing can vitiate the resulting order. The text states that where the record shows procedural unfairness, a writ petition may still be entertained despite the availability of a statutory appeal, because the alternate remedy rule does not bar intervention when natural justice is breached. It further notes that failure to place the notice in the proper portal window and the absence of a personal hearing offend audi alteram partem and justify quashing the notice and consequential order, with remand for fresh adjudication after giving the taxpayer an opportunity to reply and be heard.

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Issues: (i) Whether the writ petition was maintainable despite the availability of a statutory appeal under the GST law, where the impugned proceedings were alleged to have been passed in breach of natural justice; (ii) Whether the show cause notice and the consequential order were liable to be interfered with for want of effective service and denial of personal hearing.

Issue (i): Whether the writ petition was maintainable despite the availability of a statutory appeal under the GST law, where the impugned proceedings were alleged to have been passed in breach of natural justice.

Analysis: The availability of an alternate remedy did not bar writ interference where the record showed a lack of effective notice and denial of hearing. The petition raised a grievance of procedural unfairness going to the root of the proceedings, warranting exercise of writ jurisdiction.

Conclusion: The writ petition was maintainable and the Court declined to relegate the petitioner to the appellate remedy.

Issue (ii): Whether the show cause notice and the consequential order were liable to be interfered with for want of effective service and denial of personal hearing.

Analysis: The notice was not effectively served in the manner required and was not placed in the proper portal window, causing prejudice to the petitioner. It was also accepted that no personal hearing had been granted before passing the order. These defects offended the principles of natural justice, especially audi alteram partem, and vitiated the consequential order.

Conclusion: The show cause notice and the consequential order were quashed and set aside, and the matter was remanded for fresh consideration after giving the petitioner an opportunity to reply and be heard.

Final Conclusion: The proceedings were set aside for violation of natural justice and returned to the competent authority for de novo adjudication, with liberty to pursue statutory remedies against any fresh adverse order.

Ratio Decidendi: Where a tax proceeding suffers from ineffective service of notice and denial of personal hearing, the resulting order is vitiated, and the existence of an alternate statutory appeal does not preclude writ interference.

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