M/S. Shree Vinayak Industries vs. Assistant Commissioner Of State Tax, Purulia Charge And Ors.

Facts

The petitioner, Shree Vinayak Industries, challenged an adjudication order dated 01.02.2022 and an appellate order dated 05.02.2025. The adjudication order was passed by the Assistant Commissioner of State Tax, Purulia Charge. The petitioner's appeal before the appellate authority was dismissed solely on the grounds of limitation. The petitioner contended that a show cause notice dated 25.10.2021 was uploaded on the GST portal under the 'Additional Notice and Orders' tab without any separate intimation, preventing them from responding. They only became aware of the adjudication order due to a change in their accountant. A notice proposing recovery of liabilities was issued during the pendency of the writ petition. The petitioner argued that the proceedings violated principles of natural justice and statutory procedure.

Held

The Court held that the petitioner had made out a prima facie case. It observed that the show cause notice was only uploaded under the 'Additional Notice and Orders' tab, and no separate intimation was provided, which prevented the petitioner from replying. This was considered a violation of natural justice. Since the petitioner's appeal was dismissed by the appellate authority solely on the ground of limitation and not on merits, the Court found interference warranted in the ends of justice due to the peculiar facts of the case. The adjudication order, appellate order, show cause notice, and recovery notice were quashed and set aside. The respondent No. 1 was directed to issue a fresh show cause notice to the petitioner within two weeks, with the petitioner to file a reply within two weeks thereafter. Respondent No. 1 was also directed to revisit the issue, afford an opportunity of hearing, and pass a fresh reasoned order within 12 weeks, with the decision to be communicated within a week thereafter.

Key Issues

1. Whether the dismissal of the petitioner's appeal by the appellate authority on the sole ground of limitation, without considering the merits, is legally sustainable, particularly in light of the petitioner's contention that they were not properly intimated about the show cause notice, thereby violating principles of natural justice, as contemplated under the West Bengal Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017? The petitioner argued that the show cause notice was uploaded only on the GST portal under the 'Additional Notice and Orders' tab, leading to a lack of actual intimation and an inability to respond, constituting a violation of natural justice. They further argued that the appellate authority erred in dismissing the appeal on limitation without addressing the merits. The State-respondents contended that the petitioner was granted ample opportunities to defend their case, and therefore, the appeal was rightly dismissed on limitation.