Green Tech It City Private Limitede vs. State Of West Bengal And Anr
Original PDF →Facts
The petitioner, Greentech IT City Private Limited, filed a writ petition challenging an order passed under Section 74 of the WBGST/CGST Act, 2017, dated June 25, 2024. This order pertained to the tax period of April 2018 to March 2021. The petitioner contended that the show-cause notice issued on April 17, 2024, did not intimate a date for a personal hearing. Consequently, the proper officer proceeded to pass an order under Section 74 without affording the petitioner an opportunity of hearing. The respondents, represented by the State, did not dispute the fact that a personal hearing was not granted.
Held
The Court held that the order dated June 25, 2024, passed under Section 74 of the WBGST/CGST Act, 2017, for the tax period of April 2018 to March 2021, could not be sustained. This decision was based on the non-compliance with Section 75(4) of the said Act, which mandates that the proper officer must afford an opportunity of hearing to the petitioner when the show-cause notice contemplates passing an adverse order. The Court found that this statutory provision had not been complied with. Consequently, the order was set aside, and the matter was remanded back to the proper officer for adjudication afresh. The proper officer was directed to hear the petitioner on the show-cause notice, provide an opportunity for hearing, and decide the matter within 16 weeks from the date of communication of the order. All consequential steps taken pursuant to the impugned order were also quashed.
Key Issues
1. Whether the order passed under Section 74 of the WBGST/CGST Act, 2017, dated June 25, 2024, is liable to be set aside for non-compliance with the mandatory requirement of affording an opportunity of personal hearing to the petitioner, as stipulated by Section 75(4) of the said Act? Petitioner's contention: The petitioner argued that the proper officer failed to provide an opportunity of hearing before passing the adverse order under Section 74, despite the show-cause notice not containing any intimation of a personal hearing date. This violated the principles of natural justice and the statutory mandate of Section 75(4) of the Act. Revenue's contention: The learned advocate for the respondents did not dispute the petitioner's assertion that a personal hearing was not granted.
Sections Cited
Section 74, Section 75(4)
AI-generated summary — verify with the full judgment below
2025
sayandeep Sl. No. 83 ML Ct. No. 05
WPA 27634 of 2024
Greentech IT city Private Limited Vs. The State of West Bengal & ors.
Mr. Avra Mazumder Mr. Suman Bhowmik Ms. Alisha Das Mr. Samrat Das Ms. Elina Dey Mr. Siddhartha Das Mr. Sourendra Nath Banerjee
…..for the petitioner
Mr. Anirban Ray, Ld. GP
Mr. T. M. Siddiqui, Ld. AGP
Mr. T. Chakraborty
Mr. S. Sanyal
….. for the State
Challenging the order passed under Section 74 of the WBGST/CGST Act, 2017 (hereinafter referred to as the said Act) dated 25th June, 2024 in respect of the tax period of April 2018 to March, 2021, the instant writ petition has been filed.
Mr. Mazumder, learned advocate representing the petitioner by drawing attention of this Court to the show-cause notice issued in form GST DRC 01 dated 17th April, 2024 would submit that although the respondents were required to intimate the petitioner the date of personal hearing, the aforesaid show-cause did not provide any such intimation.
2
According to the petitioner, the proper officer without affording the petitioner with an opportunity of hearing, has decided on the show-cause and has passed the order under Section 74 of the said Act.
Mr. Sanyal, learned advocate appearing for the respondents does not dispute the fact that the opportunity of personal hearing was not granted to the petitioner.
Having heard the learned advocates representing the respective parties and noting the mandate of Section 75(4) of the said Act which obliges the proper officer to afford an opportunity of hearing to the petitioner since the show-cause contemplates passing an adverse order and such provision having not been complied with, I am of the view that the aforesaid order dated 25th June, 2024 passed under Section 74 of the said Act for the tax period of April 2018 to March, 2021 cannot be sustained.
The same is accordingly set aside. The matter is remanded back to the proper officer for adjudication afresh. The proper officer is directed to here out the show-cause by giving the petitioner an opportunity to respond to the show-cause, an opportunity of hearing, and to decide the matter within a period of 16 weeks from the date of communication of this order.
With the above directions and observations, the writ petition is disposed of.
3
All consequential steps taken by the respondents in furtherance to the order dated 25th June, 2024 issued under Section 74 of the said Act for the tax period of April 2018 to March, 2021 stands quashed.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.