Vansh Infrasolution PVT. LTD. vs. Commissioner Goods And Service Tax, State GST Deptt. & Anr.
Facts
The petitioner, Vansh Infrasolution Pvt. Ltd., filed a writ petition challenging an order dated 06.07.2022 passed under Section 74 of the Central Goods and Services Tax Act, 2017. This order raised a demand of ₹86,51,483/- for the period April 2020 to March 2021. The petitioner's primary grievance was that they were not afforded an opportunity to be heard before the impugned order was passed. The respondents, represented by the Commissioner Goods and Service Tax, State GST Deptt. & Anr., acknowledged this procedural lapse.
Held
The Court held that the impugned order dated 06.07.2022, which raised a demand of ₹86,51,483/- for the period April 2020 to March 2021, was passed in violation of the principles of natural justice. The respondents' counsel fairly conceded that the petitioner had not been given an adequate opportunity to be heard. Consequently, the Court set aside the impugned order. The Court further directed that the respondents are not precluded from issuing a fresh show cause notice and passing an appropriate order, provided that the petitioner is afforded a proper opportunity to be heard. The ratio decidendi is that an order passed without adhering to the principles of natural justice, particularly the right to a hearing, is unsustainable. The operative direction was to set aside the impugned order and allow the respondents to proceed afresh after providing a hearing to the petitioner.
Key Issues
1. Whether the impugned order dated 06.07.2022, passed under Section 74 of the Central Goods and Services Tax Act, 2017, is liable to be set aside for violation of principles of natural justice, specifically the right to be heard? The petitioner argued that the order was passed without providing them an adequate opportunity to present their case, thereby violating their fundamental right to natural justice. The respondents, through their counsel, conceded that the petitioner had not been provided with a proper opportunity to be heard. No other arguments or reliance on specific provisions, circulars, or precedents were recorded for either side.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 22.02.2023
The petitioner has filed the present petition impugning an order dated 06.07.2022 passed under Section 74 of the Central Goods and Services Tax Act, 2017 (hereafter ‘the Act’), whereby a demand of ₹86,51,483/- was raised in respect of the period April 2020 to March 2021. It is the petitioner’s grievance that he was not provided any opportunity to be heard prior to the said order.
The learned counsel appearing for the respondents fairly states that the respondents would provide another opportunity to the petitioner to be heard and pass an order thereafter.
In view of the above, the impugned order dated 06.07.2022 is set aside. The respondents are not precluded from issuing a fresh show cause notice and passing an appropriate order after affording the petition
The judgment continues below.
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