Order Passed On The Same Day When Notice Was Issued Led To The Violation Of Principle Of Natural Justice: Gujarat High Court

The petitioner/assessee is a private limited company engaged in the business of flexible packaging materials. The petitioner received a notice under section 129(3) of the Central Goods and Services Tax Act, 2017. The notice was issued calling upon the petitioner to explain why the penalty could not be levied and asked the petitioner to appear before the authorities on 13.01.2022. The petitioner received an order dated 06.01.2022, i.e., on the date when the notice was issued, by which, the petitioner was called upon to remain present before the authorities on 13.01.2022. Without giving an opportunity of hearing, the authorities passed the order on the same day when the notice was issued.

The petitioner contended that ​​the respondent had passed the order without giving the petitioner an opportunity to hear it. The Notice as well as the order that the authorities have passed on the date of the issuance of the Notice itself. The petitioner was not heard before the order was passed, and therefore, it was a case of a breach of the principles of natural justice, having not offered an opportunity of hearing before the authorities.

The court held that an opportunity of hearing had not been afforded to the petitioners and, therefore, it was in breach of principles of natural justice.

"We are of the opinion that the petition requires consideration and hence, the same is allowed. The order dated 06/01/2022 passed by respondent is hereby quashed and set aside. The petitioner shall appear before the authority within a period of three weeks from the date of receipt of this order. Thereafter, the authority shall pass order afresh in accordance with law and after examining the material, which may be placed by the petitioner. Rule is made absolute accordingly," the court said.

Case Title: M/s MBR Flexibles Ltd. Versus Deputy Commissioner Of State Tax

Citation: 2022 LiveLaw (Guj) 212

Dated: 08/06/2022

Counsel For Petitioner: Advocate Paritosh Gupta

Counsel For Respondent: Advocate Trupesh Kathiriya

Click Here To Read/Download Order