M/S Kausar Constructions Thru. Its Proprietor Mr. Kausar Shoeb vs. Commissioner Of Goods And Services Tax (GST) Lko. And 2 Others

Facts

The petitioner, M/s Kausar Constructions, through its Proprietor Mr. Kausar Shoeb, filed a writ petition challenging two orders. The first order, dated 16.04.2024, was passed under Section 73 of the GST Act. The second order, dated 17.01.2025, dismissed the petitioner's appeal as being barred by limitation. The petitioner's primary contention was that they were not granted an opportunity of hearing. The respondent revenue authorities stated that a hearing date was fixed for 12.01.2024, while the petitioner filed their reply on 28.01.2024.

Held

The Court allowed the present petition, following its earlier judgment in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr. The Court held that the principles laid down in the Mahaveer Trading Company case, which likely addressed the issue of denial of opportunity of hearing, were applicable here. Consequently, both the order dated 16.04.2024 passed under Section 73 of the GST Act and the subsequent order dated 17.01.2025 dismissing the appeal were quashed. The matter was remanded to the assessing authority with a direction to pass a fresh order after providing the petitioner with an adequate opportunity of hearing. No specific amount in dispute was mentioned.

Key Issues

1. Whether the order dated 16.04.2024 passed under Section 73 of the GST Act is vitiated due to the denial of an opportunity of hearing to the petitioner, as argued by the petitioner? 2. Whether the appeal, dismissed by the order dated 17.01.2025 as barred by limitation, should be reconsidered in light of the alleged denial of opportunity of hearing in the preceding order? The petitioner argued that a proper opportunity of hearing was not provided, which is a fundamental procedural requirement. The respondent revenue, represented by the Standing Counsel, stated that a hearing date was scheduled, and the petitioner filed their reply subsequently. The petitioner relied on the judgment of this Court in Writ Tax No.303 of 2024 (Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr.) dated 04.03.2024.