Utpal Kumar Guha vs. Principal Commissioner Of CGST And Cx Kolkata South And Ors

Facts

The petitioners, Utpal Kumar Guha, filed writ petitions challenging orders in original passed by the Principal Commissioner of CGST & CX, Kolkata South. These orders confirmed a demand for service tax and other directions, holding the petitioner liable to pay service tax to the recipient, Kolkata Municipal Corporation (KMC). The petitioners contended that the orders were passed in violation of the principles of natural justice, specifically by not being provided with copies of objections and written submissions filed by KMC during the impugned proceedings. The impugned orders were passed after giving the petitioner an opportunity for personal hearing and considering their objections and written statements.

Held

The Court held that the writ petitions were not maintainable on the ground of availability of an alternative remedy. The Court found that the impugned order was an elaborate and speaking order, passed by an authority with jurisdiction after giving the petitioner an opportunity for personal hearing and considering their objections. The Court reasoned that the petitioners' contention of violation of natural justice, based on not being furnished KMC's submissions and differing hearing times, was a hyper-technical ground and did not amount to a violation. The Court emphasized that the petitioners had been issued a show-cause notice, given an opportunity to file objections, and afforded a personal hearing, and that their contentions were dealt with in the adjudication order. The Court also noted that the petitioners had not demonstrated any bar on the appellate authority to consider the merits of the adjudication order. Therefore, without going into the merits of the adjudication order, the petitions were dismissed due to the availability of a statutory appeal.

Key Issues

1. Whether the impugned orders, passed by the Principal Commissioner of CGST & CX, Kolkata South, are vitiated by a violation of the principles of natural justice due to the non-furnishing of objections and written submissions filed by the Kolkata Municipal Corporation (KMC) to the petitioners? (Mixed question of law and fact) Petitioner's Arguments: - The petitioners argued that the principles of natural justice were violated because they were not provided with copies of the objections and written submissions filed by KMC, an interested party, in the adjudication proceedings. - They contended that the separate hearing times for KMC and the petitioners, coupled with the non-furnishing of KMC's submissions, constituted a procedural irregularity. Revenue/State's Arguments: - The revenue and the State did not record specific arguments in the judgment, but the Court's reasoning implies that the revenue authorities maintained that the principles of natural justice were not violated. - The Court noted that the impugned order was an elaborate, speaking order considering facts and laws from both sides, passed by an authority with jurisdiction after giving the petitioner an opportunity for personal hearing and considering their objections.