Mytrah Energy(INDIA) Private Limited vs. The Deputy Commissioner Of State Taxes(Int)

Held

The Court held that the appellate order dated 22.06.2026 was passed in violation of the principles of natural justice. While multiple hearing dates were scheduled, the petitioner's explicit request for an adjournment on 14.02.2025, citing a medical emergency, was summarily ignored. The appellate authority proceeded to pass the order after approximately 16 months without communicating the rejection of the adjournment request or affording one last opportunity. The Court found this non-consideration of the adjournment request and proceeding with the hearing without intimation to be fatal. Therefore, the appellate order was set aside, and the matter was remanded to the Additional Commissioner (State Tax) Appeals for fresh consideration. The 2nd respondent was directed to issue fresh notice to the petitioner and afford an opportunity of personal hearing. The Court found it unnecessary to exhaustively examine the merits of the case at this stage. No issue was expressly left undecided.

Facts

The petitioner, Mytrah Energy (India) Private Limited, filed a writ petition challenging an appellate order dated 22.06.2026 passed by the Additional Commissioner (State Tax) Appeals. This order confirmed assessment and tax/interest demands dated 13.07.2022, and a penalty order dated 07.08.2023, all passed by the Deputy Commissioner of State Taxes for the tax period 2017-2018. The dispute centers on Input Tax Credit (ITC) discrepancies between Form GSTR-3B and GSTR-2A. The petitioner argued that the impugned orders were unsustainable as they failed to follow CBIC Circular No.183/15/2022-GST and violated principles of natural justice by ignoring a request for adjournment due to a medical emergency. The revenue contended the writ petition was not maintainable and the principles of natural justice were not violated, as multiple hearing opportunities were provided.

Key Issues

1. Whether the appellate order dated 22.06.2026, which confirmed the demands and penalty for the tax period 2017-2018, is unsustainable for failing to adhere to the procedural mechanisms prescribed by CBIC Circular No.183/15/2022-GST regarding bona fide ITC mismatches? (Question of law). 2. Whether the appellate order dated 22.06.2026 was passed in violation of the principles of natural justice due to the non-consideration of the petitioner's request for adjournment dated 14.02.2025, thereby denying a fair opportunity of being heard? (Question of mixed law and fact). Petitioner's arguments: The impugned orders are unsustainable as they did not follow CBIC Circular No.183/15/2022-GST, which mandates verification and checking of certifications for bona fide ITC mismatches within monetary thresholds for FY 2017-18 and 2018-19. The orders also suffer from a jurisdictional and procedural infirmity as they were passed in violation of natural justice principles, specifically by ignoring a written request for adjournment due to a medical emergency without granting a fair hearing. Revenue's arguments: The writ petition is not maintainable as the petitioner has a remedy of appeal before the Tribunal. The contention of violation of natural justice is untenable as the order was passed after affording four opportunities for personal hearing. The writ petition lacks merits.