M/S. Nakshatra House Keeping Services vs. The Assistant Commissioner (St)
Held
The Court held that the petitioner's argument regarding the violation of the principles of natural justice could not be brushed aside. Even if the notice was sent by email, the time provided to the petitioner was insufficient to enable them to engage a counsel and present their case effectively, considering their circumstances. The Court found that deciding the matter without affording a reasonable opportunity to the petitioner amounted to a violation of natural justice. Consequently, the Court set aside the impugned order and remanded the matter back to the authority. The authority was directed to decide the case on or before December 15, 2020, after hearing the petitioner. The Court also specified that no fresh notice would be issued to the petitioner for the hearing date.
Facts
The petitioner filed a writ petition challenging an Order of Assessment cum Penalty cum Interest passed by the Assistant Commissioner (State Tax) on November 13, 2019. The order pertained to tax periods 2017-18 (from July 2017), 2018-19, and 2019-20 (up to July 2019) under the CGST Act, 2017. The petitioner contended that the final hearing notice dated November 6, 2019, was served on November 12, 2019, giving insufficient time to prepare objections and attend a hearing scheduled for November 13, 2019. The petitioner claims to have visited the office on November 13, 2019, only to find the order already passed. The revenue disputed this, stating the notice was sent via email on November 7, 2019.
Key Issues
1. Whether the impugned Order of Assessment cum Penalty cum Interest passed by the First Respondent is violative of the principles of natural justice, specifically the right to a reasonable opportunity of being heard, under the CGST Act, 2017? Petitioner's Arguments: The petitioner argued that receiving the final hearing notice on November 12, 2019, for a hearing on November 13, 2019, provided insufficient time to prepare and attend. The petitioner's tax consultant, located in Hyderabad, could not travel on such short notice. The petitioner attempted to seek an adjournment and visited the respondent's office on November 13, 2019, but the order was already passed. This lack of a reasonable opportunity to present their case violates natural justice. Revenue's Arguments: The revenue contended that the notice was sent via email on November 7, 2019, at 12:59 PM, providing adequate time for the petitioner to file objections and represent their case on November 13, 2019. Therefore, the petitioner's claim of no opportunity being given is not acceptable.
Sections Cited
CGST Act, 2017
AI-generated summary — verify with the full judgment below
THE HONOURABLE SRI JUSTICE C.PRAVEEN KUMAR AND THE HONOURABLE SRI JUSTICE D.RAMESH
W.P.No.3469 OF 2020
ORDER:- (Per Hon’ble Sri Justice C.Praveen Kumar)
This Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:- “……….to issue an appropriate Writ, Order or Direction, more particularly in the nature of MANDAMUS declaring that the impugned Order of Assessment cum Penalty cum Interest passed by the First Respondent vide GSTN No.37AAEFF7537K1Z1(CGST), dated 13.11.2019 for the Tax Periods 2017-18 (from July, 2017), 2018-19 and 2019-20 (up to July, 2019) under the CGST Act, 2017, without affording reasonable opportunity to the Petitioner to file its objections and attend personal hearing, without jurisdiction, violative of the principles of natural justice, contrary to law and contrary to the provisions of the GST Acts, 2017, unsustainable, unjustified and illegal and consequently set aside the same and pass..….”
Though various grounds are raised, learned counsel for the petitioner would submit that the Final – cum – Hearing Notice, dated 06.11.2019, wherein the petitioner was directed to appear
The judgment continues below.
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