Acme Paints And Resin PVT. LTD. vs. Deputy Commissioner Of State Tax, Esplanade And Fairley Place Charge And Ors.

Facts

The petitioner, ACME PAINTS AND RESIN PVT. LTD., filed a writ petition challenging an adjudication order dated August 14, 2023, and an appellate order dated March 15, 2024. The adjudication order was passed by the Deputy Commissioner of State Tax, Esplanade and Fairley Place Charge, and the appellate order by the appellate authority under Section 107 of the West Bengal Goods and Services Tax Act and the Central Goods and Services Tax Act. The petitioner's appeal was dismissed solely on the ground of limitation. The petitioner contended that a show cause notice dated July 3, 2023, was uploaded on the GST portal under the 'Additional Notice and Orders' tab without any separate intimation, preventing them from responding. The State respondents argued that the petitioner had ample opportunities and the appeal was rightly dismissed on limitation.

Held

The Court held that the petitioner had made out a prima facie case. The Court found that the show cause notice was uploaded only under the 'Additional Notice and Orders' tab, and no separate intimation was given to the petitioner. This failure to provide separate intimation constituted a violation of the principles of natural justice, as it prevented the petitioner from replying to the notice. Since the petitioner's appeal was dismissed by the appellate authority solely on the ground of limitation and not on merits, the Court deemed interference warranted in the interests of justice. Consequently, the appellate order dated March 15, 2024, and the adjudication order dated August 14, 2023, were quashed and set aside. The petitioner was directed to file a reply to the show cause notice within two weeks, which the concerned authority was to consider within four weeks, passing a fresh reasoned order after affording an opportunity of hearing. The decision was to be communicated to the petitioner within a week thereafter. No issue was expressly left undecided.

Key Issues

1. Whether the appellate order dated March 15, 2024, dismissing the petitioner's appeal on the ground of limitation, is legal and valid, considering the petitioner's contention that they did not receive proper intimation of the show cause notice dated July 3, 2023, thereby violating principles of natural justice, and which provision of the CGST Act/WBGST Act does this issue turn on? The petitioner argued that the show cause notice was uploaded only on the GST portal under the 'Additional Notice and Orders' tab, and no separate intimation was provided. This lack of intimation prevented them from responding to the notice, leading to a violation of natural justice and rendering the subsequent proceedings and orders illegal. They relied on the principles of natural justice and the procedural requirements of the Act. The State respondents argued that the petitioner was granted ample opportunities to defend their case, and therefore, the appeal was correctly dismissed on the ground of limitation. They did not specify any particular provision or precedent relied upon.