M/S Sh Haryana Wires LTD vs. Union Of INDIA

Held

The Court held that the Appellate Authority had failed to adhere to the procedure prescribed in the CBIC circular dated July 28, 2022, and had grossly violated the principles of natural justice. While the revenue argued that Section 75(a) of the GST Act mandates only three opportunities for personal hearing, the Court noted that the respondents themselves had granted a fourth opportunity by fixing the hearing for June 10, 2024, after the petitioner requested an adjournment for the third opportunity. In light of this, and the petitioner's specific request for video conferencing as per the amended circular, the Appellate Authority ought to have provided the virtual hearing link. Consequently, the appellate order dated July 19, 2024, was set aside. The appeal was restored to its original number, and the Appellate Authority was directed to rehear the parties and pass a fresh appellate order in accordance with the law.

Facts

The petitioner, M/s SH Haryana Wires Ltd., filed a writ petition challenging an appellate order dated July 19, 2024, passed by the Joint Commissioner (Appeals II). The primary grievance of the petitioner was that they were denied a personal hearing through video conferencing, despite requesting it. The petitioner had requested a video conferencing link for a hearing scheduled on June 10, 2024, as per communication dated June 7, 2024. This request was not accommodated, and the appellate authority proceeded to pass the final order. The Union of India and the Superintendent of Central Tax were respondents. The tax period is not explicitly stated.

Key Issues

1. Whether the Appellate Authority committed a procedural irregularity by not providing a personal hearing through video conferencing to the petitioner, despite a request, in violation of the principles of natural justice and extant instructions? Petitioner's Arguments: The petitioner argued that the CBIC instructions dated July 28, 2022, which amended previous instructions, made it obligatory for the Appellate Authority to provide a virtual hearing upon request. Since such a request was made and not granted, the appellate order should be set aside and the matter remitted back for a fresh hearing. Revenue's Arguments: The revenue contended that Section 75(a) of the Goods and Services Tax Act, 2017, requires three opportunities for personal hearing. The petitioner had admittedly been granted three opportunities, and an additional fourth opportunity was fixed for June 10, 2024. Therefore, even if video conferencing was not provided, the appellate order was not vitiated as the statutory requirement of three opportunities was met.