Mr. Mahabir Prasad Kedia, Proprietor Of M/S. Sanjay Casting And Engineering Co. vs. The Deputy Commissioner Of State Tax, Howrah Charge, Government Of West Bengal And Ors

Facts

The petitioner, Mahabir Prasad Kedia, proprietor of M/s. Sanjay Casting & Engineering Co., filed a writ petition challenging an order dated 12th April 2023, uploaded on 13th April 2023, passed by the Deputy Commissioner of State Tax, Howrah Charge, Government of West Bengal. This order was issued under Section 73(1) of the CGST/WBGST Act, 2017. The petitioner contended that the impugned order was non-speaking and failed to consider the detailed reply and objections filed by the petitioner on 5th April 2023, in response to a show-cause notice dated 18th November 2022. The revenue, represented by the State, was the respondent.

Held

The Court found that the petitioner's allegation of the impugned order being non-speaking was substantially correct. The order dated 12th April 2023 did not deal with the contentions and objections raised by the petitioner in its reply to the show-cause notice. Consequently, the Court set aside the impugned order. The matter was remanded back to the adjudicating authority to pass a fresh speaking order in accordance with the law. This fresh order must take into consideration the petitioner's objections and provide an opportunity of hearing to the petitioner or its authorized representatives. The adjudicating authority was directed to pass the fresh order within eight weeks from the date of communication of this order. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the impugned order dated 12th April 2023, passed under Section 73(1) of the CGST/WBGST Act, 2017, is a non-speaking order and fails to consider the petitioner's objections. The petitioner argued that the impugned order was non-speaking and did not address the elaborate reply/objection filed on 5th April 2023 against the show-cause notice dated 18th November 2022. The petitioner relied on the principle that an adjudicating authority must pass a speaking order that deals with the contentions raised by the assessee. The revenue did not record any specific arguments against this contention.