Debashis Dutta vs. State Of West Bengal And Ors.

Facts

The petitioner, Debashis Dutta, filed a Writ Petition challenging an Adjudication Order dated April 18, 2024, passed by Respondent No. 4 under Section 73 of the West Bengal Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017, for the period April 2018 to March 2019. The petitioner also challenged two recovery notices dated March 6, 2025, and February 27, 2026. The petitioner argued that a Show Cause Notice was issued on November 30, 2023, but the date for personal hearing was marked as 'N.A.'. The Adjudication Order was passed ex parte and uploaded on the GST portal under 'Additional Notices and Orders' without the petitioner being made aware. A sum of Rs. 2,36,299/- had already been recovered from the petitioner's Electronic Credit Ledger on March 11, 2026.

Held

The Court held that the petitioner had made out a prima facie case warranting interference. The Court found that the Show Cause Notice and the Adjudication Order were uploaded only under the 'Additional Notices and Orders' tab, which deprived the petitioner of knowledge of the proceedings. This constituted a violation of the principles of natural justice. The Court noted that since 38.69% of the disputed tax had already been recovered, granting an opportunity of hearing to the petitioner would serve the ends of justice. The State's contention that the matter had attained finality was rejected due to the procedural irregularities. Consequently, the Adjudication Order dated April 18, 2024, and the consequential recovery notices were quashed and set aside, as the petitioner could not be held liable under an ex parte order. Respondent No. 4 was directed to reconsider the petitioner's case, afford a personal hearing, and pass a reasoned and speaking order by September 30, 2026. The Court clarified that it had not gone into the merits of the case and Respondent No. 4 was free to take an independent decision.

Key Issues

1. Whether the Adjudication Order dated April 18, 2024, passed under Section 73 of the WBGST Act, 2017, is vitiated by a violation of the principles of natural justice, specifically regarding the lack of proper notice and opportunity of hearing to the petitioner? (Mixed question of law and fact) Petitioner's Arguments: - The petitioner contended that the Show Cause Notice had 'N.A.' for the personal hearing date and the Adjudication Order was passed ex parte without the petitioner being aware of it, despite its upload on the GST portal under 'Additional Notices and Orders'. - The petitioner argued that since 38.69% of the disputed tax had already been recovered, the interest of the revenue would not be prejudiced by reconsidering the order. - The petitioner prayed for the Adjudication Order to be reconsidered, the matter remanded for fresh consideration, and the recovery notices to be set aside. State's Arguments: - The State submitted that Rs. 2,36,299/- was recovered as tax from the electronic credit ledger, without any recovery towards interest and penalty.