Harsh Polyfabric PVT LTD. vs. Union Of INDIA And Ors

Facts

The petitioner, Harsh Polyfabric Pvt Ltd, filed a writ petition challenging an order dated March 10, 2021, passed by the appellate authority under the West Bengal Goods and Services Tax (WBGST) Act. The petitioner also challenged the constitutional validity of Circular No. 31/2019 (Circular No. 110/29/2019-GST). However, the petitioner did not press the challenge to the constitutional validity of the circular, noting it was not raised before the appellate authority. The primary contention was that the impugned order of the appellate authority was passed ex parte, despite the petitioner's inability to participate in the hearing.

Held

The Court held that the impugned order of the appellate authority dated March 10, 2021, was passed ex parte. While the reasons for the petitioner's non-participation were not detailed, the Court, in the interest of justice, set aside the ex parte order. The matter was remanded back to the appellate authority to pass a fresh speaking order in accordance with the law. This fresh order must be passed after providing an opportunity of hearing to the petitioner or its authorized representative. The Court directed that this should be done within twelve weeks from the date of communication of the order. The Court also noted that no unnecessary adjournments should be granted, and if the petitioner fails to cooperate, the appellate authority is free to pass an ex parte order. The challenge to the constitutional validity of Circular No. 31/2019 was not pressed by the petitioner and was not raised before the appellate authority, hence not decided by the High Court.

Key Issues

1. Whether the impugned order of the appellate authority dated March 10, 2021, passed under the WBGST Act, is legally sustainable, considering it was passed ex parte. 2. Whether Circular No. 31/2019 (Circular No. 110/29/2019-GST) is constitutionally valid. Petitioner's arguments: The petitioner argued that the appellate authority's order was passed ex parte, and they were unable to participate in the hearing for reasons not specified. They sought to set aside this order. Revenue/State's arguments: The judgment does not record any specific arguments made by the Union of India or the State authorities regarding the ex parte order or the constitutional validity of the circular. However, the appearance of learned advocates for the State and CGST Authority indicates their presence and likely opposition or defense of the impugned order and circular.