Vertical Vyapar PVT LTD vs. Commissioner Of CGST, Delhi East

Facts

The Petitioner, Vertical Vyapar Pvt. Ltd., filed a writ petition challenging an order dated January 25, 2025, passed by the Commissioner of CGST, Delhi East. The sole ground for challenge was the alleged non-issuance of a Show Cause Notice (SCN) and the absence of a personal hearing. The Petitioner claimed no SCN was issued and no personal hearing was provided. The Respondent, Commissioner of CGST, Delhi East, submitted that proper hearing notices were issued and personal hearings were granted on multiple dates. The impugned order itself contained extracts indicating that a Chartered Accountant attended a personal hearing on behalf of the Petitioner and others on October 27, 2022, and requested time for submissions. Further personal hearings were scheduled for October 30, 2022, November 17, 2022, and January 10, 2024, with a representative appearing for another entity on the last date. The Court noted that a Director of the Petitioner's associated entity was present during one of the hearings.

Held

The Court held that the Petitioner's claim of not receiving a Show Cause Notice (SCN) and not being provided a personal hearing was baseless. The Court examined the impugned order and found that it clearly indicated that proper hearing notices had been issued to the Petitioner. Specifically, the order mentioned that a Chartered Accountant attended a personal hearing on behalf of the Petitioner and other entities on October 27, 2022, and requested time for submissions. Furthermore, the order detailed subsequent scheduled personal hearings on October 30, 2022, November 17, 2022, and January 10, 2024. The Court also noted the presence of a Director of an associated entity during one of these hearings, which suggested that the Petitioner was indeed aware of the proceedings. Based on this evidence, the Court concluded that the Petitioner had sufficient notice and opportunity for a hearing. Consequently, the writ petition was dismissed with costs.

Key Issues

1. Whether the Petitioner, Vertical Vyapar Pvt. Ltd., was denied a proper opportunity for a personal hearing as required by law, thereby violating principles of natural justice, in relation to the order dated January 25, 2025, passed by the Commissioner of CGST, Delhi East? The Petitioner argued that no Show Cause Notice (SCN) was issued and no personal hearing was provided, rendering the impugned order invalid. The Petitioner contended that the absence of these procedural safeguards violated their right to be heard. The Respondent argued that the Petitioner had sufficient notice and opportunities for personal hearings. They relied on extracts from the impugned order which indicated that a Chartered Accountant attended a personal hearing on behalf of the Petitioner and others on October 27, 2022, and that further hearings were scheduled. The Respondent also pointed out that a Director of an associated entity was present during one of these hearings, implying the Petitioner was aware of the proceedings.