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Case Summary: M/S Gaurav Enterprizes vs. State of U.P. and Another
Case Number: WRIT
TAX No. 1181 of 2023
Date of Order: 13th
October 2023
Court: High
Court of Judicature at Allahabad
Summary of the Case: M/S
Gaurav Enterprizes filed a writ petition challenging an order dated 4th
February 2023 issued under Section 74 of the GST Act. The main contention was
that the order was passed without affording the petitioner an opportunity for a
personal hearing, as required by law. The petitioner argued that the lack of a
hearing date in the show cause notice violated the principles of natural
justice. The court quashed the impugned order and directed the issuance of a
fresh notice with a specified date for a hearing.
Facts of the Case:
·
Issuance of Show Cause Notice (SCN): A
show cause notice under Section 74 of the GST Act was issued to M/S Gaurav
Enterprizes on 9th October 2022.
·
Deficiency in Notice: The notice failed to
specify the date of the personal hearing, an essential component of due
process.
·
Impugned Order: Subsequently, an order was
passed on 4th February 2023, holding M/S Gaurav Enterprizes liable under
Section 74 of the GST Act without the opportunity for a hearing.
Submission by the
Petitioner:
·
The petitioner contended that the impugned
order was unsustainable because it was passed without granting an opportunity
for a personal hearing.
·
The petitioner relied on a prior decision
by the Allahabad High Court in M/S Mohini Traders vs. State of U.P.,
where a similar order was quashed due to the lack of a personal hearing.
·
It was argued that the SCN was defective
because it did not provide a date for the hearing, thereby violating Section
75(4) of the GST Act and principles of natural justice.
Submission by the
Respondent:
·
The counsel for the respondent did not
dispute the assertion that the issues raised in the present writ petition were
identical to those in the M/S Mohini Traders case.
·
It was acknowledged that the impugned
order could be set aside and the department allowed to proceed afresh,
following the proper procedure.
Findings and Judgement:
·
Reference to Previous Judgement: The court
referenced the judgement in M/S Mohini Traders, where it was held that
an assessee is not required to request a personal hearing explicitly; it is the
responsibility of the assessing authority to grant it when an adverse decision
is contemplated.
·
Violation of Natural Justice: The court
observed that denying a personal hearing before passing an adverse order
violated the principles of natural justice, as interpreted in previous rulings.
·
Quashing the Order: The court quashed the
impugned order dated 4th February 2023 and allowed the petitioner to be issued
a fresh show cause notice with a specified date for the hearing.
Conclusion: The
court concluded that the absence of a personal hearing date in the show cause
notice, and the subsequent failure to provide an opportunity for the petitioner
to be heard, rendered the order dated 4th February 2023 invalid. The case was
remitted back to the Assistant Commissioner, State Tax, to issue a new show
cause notice, ensuring compliance with the principles of natural justice by
specifying a date for the personal hearing.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
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