Reliance Integrated Services PVT LTD. vs. Commissioner Of CGST And Central Excise

Facts

The Petitioner, M/s. Reliance Integrated Services Pvt. Ltd., filed a writ petition challenging an Order-in-Original dated May 13, 2021, passed by the Commissioner of CGST & Central Excise, Belapur. The Petitioner contended that the order was passed in breach of the principles of natural justice. Specifically, the Petitioner argued that despite the order mentioning personal hearings on multiple dates in 2021, no actual hearing was granted. Furthermore, the Petitioner claimed the impugned order was never served upon them, and they only became aware of it on February 9, 2023, when a photocopy was handed over by a subordinate official. The show cause notice was dated June 26, 2020, issued during the COVID-19 pandemic lockdown. The Petitioner also referred to Supreme Court orders extending limitation periods due to the pandemic.

Held

The Court held that the impugned Order-in-Original dated May 13, 2021, passed by the Commissioner, CGST & Central Excise, Belapur, was unsustainable and liable to be quashed and set aside due to a glaring breach of the principles of natural justice. The Court found substance in the Petitioner's contention that despite the order mentioning several dates for personal hearings, there was no material to indicate that such hearings were actually granted. The Court also noted that the show cause notice was issued during the pandemic lockdown, and the Petitioner was not afforded a fair opportunity to be heard. Furthermore, the Court found it established that the impugned order was never served on the Petitioner, and they only became aware of it much later. The Court reasoned that for an order adverse to a party to be valid, principles of natural justice, including proper service of notices and a fair opportunity of hearing, must be adhered to. The ratio decidendi is that an order passed in breach of natural justice, particularly concerning non-service and denial of a hearing, is void ab initio and cannot be sustained. The Court quashed the order and remanded the proceedings to the respondent for fresh consideration after hearing the petitioner.

Key Issues

1. Whether the Order-in-Original dated May 13, 2021, passed by the Commissioner of CGST & Central Excise, Belapur, is liable to be quashed and set aside on the ground of breach of principles of natural justice, specifically concerning the alleged non-grant of a personal hearing to the petitioner? 2. Whether the impugned order is vitiated by non-service upon the petitioner, thereby violating principles of natural justice? Petitioner's Arguments: The Petitioner argued that the impugned order was passed in breach of natural justice as no adequate opportunity of being heard was provided. They highlighted that the dates mentioned for personal hearings in the order did not translate into actual hearings. The Petitioner also asserted that the order was never served, and they only came to know about it much later. Reliance was placed on Supreme Court orders in Suo-moto Writ Petition (C.) No. 3 of 2020 regarding extension of limitation periods during the pandemic. Respondent's Arguments: The judgment does not record any specific arguments made by the Respondent (Commissioner of CGST & Central Excise, Belapur).