M/S Vyshnavi Fillers PVT. LTD. vs. The Additional Commissioner
Held
The Court allowed the writ petition and set aside the impugned order. The Court held that the appellate authority ought not to have disposed of the appeal on merits when the petitioner intended to withdraw it. Additionally, the Court found that the impugned order was passed prematurely, even before the date fixed for the personal hearing of the appeal. Consequently, the Court remitted the appeal to the Additional Commissioner, Central Tax (Appeals) for disposal afresh, in accordance with the procedure established by law. The ratio decidendi is that an appellate authority cannot proceed to decide an appeal on merits when a request for withdrawal has been made, and more importantly, cannot pass an order before the scheduled date of hearing, thereby violating principles of natural justice.
Facts
The petitioner filed an appeal on April 3, 2019, before the Additional Commissioner, Central Tax (Appeals) (1st respondent) against an assessment order dated November 20, 2018. Subsequently, on April 3, 2019, the petitioner received a letter from respondent no. 2 stating that recovery actions were withdrawn due to discharge of tax liability and interest, and that proceedings under Section 62 were concluded, with separate penal action for non-filing of returns to be initiated. On April 5, 2019, the petitioner requested the withdrawal of their appeal. Despite this, the petitioner received a letter on April 8, 2019, from the 1st respondent scheduling a personal hearing for May 29, 2019. However, the 1st respondent passed the impugned order on May 1, 2019, prior to the scheduled hearing date. The petitioner filed this writ petition challenging the impugned order.
Key Issues
1. Whether the appellate authority erred in disposing of the appeal on merits when the petitioner had sought to withdraw it? (Question of law) 2. Whether the impugned order is liable to be set aside for being passed before the scheduled date of personal hearing? (Question of law) The petitioner argued that the appellate authority should not have disposed of the appeal on merits when the petitioner intended to withdraw it. Furthermore, the petitioner contended that the appeal was disposed of before the scheduled hearing date, violating principles of natural justice, and therefore, the impugned order should be set aside and the matter remitted for fresh disposal, considering the withdrawal request. The respondents did not dispute the facts presented by the petitioner, including the disposal of the appeal before the scheduled hearing date.
Sections Cited
Section 62
AI-generated summary — verify with the full judgment below
THE HONOURABLE SRI JUSTICE M. SEETHARAMA MURTI AND THE HONOURABLE MS. JUSTICE J.UMA DEVI WRIT PETITION No.10713 of 2019
ORDER: (Per Hon’ble Sri Justice M.Seetharama Murti)
This writ petition is filed seeking verbatim the following relief: “i) to set aside the impugned order in Appeal No.03/VZG- gST-VZC-APP-0003-19-20-GST, dated 01.05.2019, passed by the 1st respondent for being arbitrary, illegal, violative of principles of natural justice and suffering from non- application of mind and consequently, ii) to direct the respondent No.1 to restore the petitioner’s appeal No.03/2019/V-P-GST, dated 03.04.2019, on the file of the 1st respondent and to pass such other order or orders.”
We have heard the submissions of the learned counsel for the petitioner; of the learned standing counsel appearing for the respondents 1 to 3; and, of the learned Assistant Solicitor General of India, appearing for the 4th respondent/Union of India. The facts of the case, which are relevant for consideration, in brief, are as follows: The petitioner preferred,before the 1st respondent, an appeal,on 03.04.2019, vide appeal no. 03/2019/V-P-GST against the assessment o
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