K. Sudhakar And Co. vs. The Superintendent Of GST And Central Excise

Facts

The petitioner, K. Sudhakar and Co., filed a writ petition challenging an Order-in-Original dated 16.04.2024, passed by the Superintendent of GST and Central Excise. The petitioner contended that all notices and communications were uploaded on the GST common portal, and due to a lack of awareness of these uploads, they failed to file a reply within the stipulated time. Consequently, the impugned order was passed without providing an opportunity for a personal hearing. The petitioner also argued that a specific issue regarding Input Tax Credit (ITC) barred by limitation was covered by a previous order of the High Court.

Held

The Court held that the impugned order was passed in clear violation of the principles of natural justice, as the petitioner was not afforded an opportunity of personal hearing, and was unaware of the show cause notice uploaded on the GST portal. Regarding the issue of ITC barred by limitation, the Court followed its previous order dated 17.10.2024 in W.P.Nos.25081 of 2023, etc., batch. The Court quashed the impugned order concerning the claim for ITC barred by limitation under Section 16(4) of the CGST Act, 2017, but subject to the period prescribed in Section 16(5) of the Act. For all other issues, the ex-parte assessment order was set aside, and the matter was remanded to the respondent for fresh consideration. The petitioner was directed to file their reply within three weeks, after which the respondent was to issue a 14-day clear notice for a personal hearing and pass appropriate orders.

Key Issues

1. Whether the impugned order, passed without providing an opportunity of personal hearing to the petitioner, violates the principles of natural justice, particularly in light of notices being uploaded only on the GST portal? 2. Whether the claim for ITC, barred by limitation under Section 16(4) of the CGST Act, 2017, should be quashed as per a previous High Court order? Petitioner's Arguments: The petitioner argued that the ex-parte order was passed in violation of natural justice as they were unaware of the notices uploaded on the GST portal and were not given a personal hearing. They relied on the common order dated 17.10.2024 passed in W.P.Nos.25081 of 2023, etc., batch, which quashed similar orders concerning ITC claims barred by limitation under Section 16(4) of the CGST Act, 2017. Respondent's Arguments: The respondent confirmed that notices were uploaded on the GST portal but acknowledged that the petitioner failed to avail the opportunity. The respondent fairly admitted that no personal hearing was provided before passing the impugned order and requested the matter be remitted back.