Csj Infrastructure Private Limited vs. Union Territory Of Chandigarh And Another

Facts

The petitioner received a Demand Notice dated 14.08.2025, demanding a sum of Rs.2,12,00,245/-. This amount was purportedly for advertisement fee, penalty, interest, and GST related to the exhibition of advertisements in the petitioner's commercial shopping mall premises for a period of forty-six days, from 01.07.2025 to 15.08.2025. The petitioner contended that this Demand Notice was issued without any prior notice, violating the principles of natural justice. The respondents, represented by learned senior counsel, acknowledged this and agreed to afford the petitioner an opportunity of hearing before passing any final order. The Demand Notice was to be treated as a Show Cause Notice.

Held

The Court noted the submissions made by the learned senior counsel for the respondents. It was stated that the respondent-authorities would provide the petitioner with a due opportunity of hearing before issuing any final order. The Demand Notice dated 14.08.2025 was to be considered solely as a Show Cause Notice, allowing the petitioner to submit a formal reply if they chose to do so. Furthermore, the concerned competent authority was directed to finalize the matter within a period of four weeks from the date of the hearing, ensuring that all concerned parties were given a proper opportunity to be heard and that a speaking order was passed. Based on these submissions, the Court found no further orders necessary in the present writ petition.

Key Issues

1. Whether the Demand Notice dated 14.08.2025, issued for Rs.2,12,00,245/- concerning advertisement fee, penalty, interest, and GST for the period 01.07.2025 to 15.08.2025, was issued in violation of the principles of natural justice by failing to provide prior notice to the petitioner? Petitioner's contention: The petitioner argued that the Demand Notice was issued without affording any prior notice, thus contravening the principles of natural justice. Respondents' contention: The respondents fairly stated that they would provide the petitioner with due opportunity of hearing before passing any final order. They agreed to treat the Demand Notice dated 14.08.2025 as a Show Cause Notice, to which the petitioner could submit a reply. The competent authority would then decide the matter within four weeks after hearing all parties and passing a speaking order.