Bidyut Distributors vs. State Of West Bengal And Ors.
Held
The Court held that the adjudication order dated July 20, 2020, was liable to be set aside due to a clear violation of the principles of natural justice. The reasoning was that the hearing date (February 25, 2020) was fixed prior to the deadline for submitting the reply to the show-cause notice (March 12, 2020). This procedural irregularity prevented the petitioners from adequately responding to the allegations before the adjudication. The Court explicitly stated that it had not examined the merits of the assessment order itself. The ratio decidendi is that a hearing scheduled before the opportunity to submit a response is a violation of natural justice. The Court set aside the impugned order and directed the respondents/Adjudicating Authority to pass a fresh speaking order in accordance with law, providing the petitioners with a proper opportunity of hearing within two months from the communication of the order.
Facts
The petitioners, Bidyut Distributors & Anr., challenged an adjudication order dated July 20, 2020, passed under Section 74 of the State GST Act. The challenge was based on violations of the principles of natural justice and jurisdictional issues. The petitioners contended that a show-cause notice dated February 11, 2020, required them to reply by March 12, 2020, but the hearing was scheduled for February 25, 2020, which was prior to the deadline for submitting their reply. The respondents, the State of West Bengal & Ors., represented by the learned GP, were unable to contradict these allegations, which were substantiated by the record.
Key Issues
1. Whether the adjudication order dated July 20, 2020, passed under Section 74 of the State GST Act is liable to be set aside on the ground of violation of the principles of natural justice? The petitioners argued that the procedure followed was fundamentally flawed, as the hearing date was fixed before the due date for submitting their reply to the show-cause notice. This, they contended, denied them a fair opportunity to present their case. The respondents, represented by the learned GP, did not present any arguments to counter this claim, acknowledging that the allegations were substantiated by the record.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
2021 ks WPA 128 of 2021 sl. 52 Bidyut Distributors & Anr.
Vs State of West Bengal & Ors.
Mr. A. Mazumdar, Mr. Suryaneel Das … For the Petitioners.
Mr. A. Roy, Ld. GP Mr. T.M Siddiqui, Mr. N. Chatterjee … For the State.
Heard learned Advocates appearing for the parties.
In this writ petition the petitioners have challenged the impugned adjudication order dated 20th July, 2020 under Section 74 of the State GST Act on the ground of violation of principles of natural justice as well as on the ground of jurisdiction also for the reasons, which appears from record that before passing the final adjudication order dated 20th July, 2020, a show- cause-notice dated 11th February, 2020 was issued and by that show-cause-notice, petitioners were asked to give reply to the said show-cause-notice by 12th March, 2020 while the date of hearing was fixed on 25th February, 2020, which is prior to the date of submission of reply to the show-cause-notice fixed by the Adjudicating Officer concerned.
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