M/S. Toptech Engineering Company PVT LTD vs. The Office Of The Assistant Commissioner Of GST And Central Excise

Held

The Court held that the petitioner's claim of not receiving personal hearing notices was contradicted by the documents submitted by the respondents, which showed that notices were sent and the last one was served on the petitioner. The Court also found that the petitioner's letter dated 16.12.2021, which was the basis of their argument for non-consideration of reply, was not received by the respondents. The Court noted that the petitioner had only sent a letter dated 22.11.2021 seeking time to file a reply due to illness. Consequently, the Court found that the contents of the impugned order, stating that no reply was received and the petitioner did not attend the personal hearing, were confirmed. Since the writ petition was primarily based on the ground of violation of principles of natural justice and there was no serious challenge to the order on merits, the Court saw no reason to interfere. The Court also observed that, as per the petitioner's own statement, service taxes were not paid but included in their bills. Therefore, the writ petition was dismissed.

Facts

The petitioner, M/s.Toptech Engineering Company Pvt Ltd., a labour contractor, supplied manpower to M/s.Ultra Tech Cement Ltd. between April 1, 2016, and June 30, 2017. For the period April 9, 2016, to July 31, 2016, the petitioner did not charge service tax, assuming the cement company would pay it. For the subsequent period, though service tax was billed, the petitioner believed the company was remitting it. The Assistant Commissioner of GST and Central Excise issued a letter on July 22, 2021, highlighting a discrepancy between income tax returns and Service Tax-3 returns. Following this, a show cause notice proposed to estimate taxable value at Rs. 3,17,62,294/- and tax of Rs. 47,64,344/-. The petitioner sought time to reply and for a personal hearing. Subsequently, the impugned order-in-original No.51/2022-ST dated September 30, 2022, was issued, stating no reply was received and the petitioner did not attend the personal hearing.

Key Issues

1. Whether the impugned order-in-original No.51/2022-ST dated 30.09.2022, passed by the Assistant Commissioner of GST and Central Excise, is liable to be quashed on the grounds of illegality, arbitrariness, lack of jurisdiction, and violation of the principles of natural justice, specifically concerning the non-consideration of the petitioner's reply dated 16.12.2021 and the alleged denial of a personal hearing? Petitioner's contentions: The petitioner argued that their reply dated 16.12.2021, along with supporting documents, was not considered by the respondents. They also contended that they did not receive any notices for personal hearings and therefore could not attend, leading to a violation of natural justice principles. The petitioner sought to quash the impugned order on these grounds. Respondents' contentions: The respondents submitted documents indicating that notices for personal hearings were sent on multiple dates, with the last one being served on the petitioner. They also asserted that the reply dated 16.12.2021 was not received, and only a letter dated 22.11.2021, seeking time due to illness, was received. The respondents contended that the petitioner did not appear for the personal hearing and that the impugned order's findings regarding non-receipt of reply and non-attendance at hearings were correct.