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2024 (1) TMI 1247 - HC - GSTViolation of principles of natural justice - gross violation of the established position of law - whether the ruling of the AAAR rendered in the appeal by utilising the report containing adverse material against the petitioner in absence of confrontation is vitiated? - HELD THAT:- The principles of natural justice are those rules which have been laid down by the Courts as being the minimum protection of the rights of the individual against the arbitrary procedure that may be adopted by a judicial or quasi-judicial authority while making an order affecting those rights. These rules are intended to prevent such authority from doing injustice. Law is well-settled that in the applicability of the doctrine of natural justice there can be no distinction between the quasi-judicial function and an administrative function inasmuch as the aim of both is to arrive at a just decision and to prevent miscarriage of justice. In STATE OF ORISSA VERSUS DR. (MISS) BINAPANI DEI & ORS. [1967 (2) TMI 96 - SUPREME COURT], the Supreme Court observed that even an administrative order or decision in matters involving civil consequences have to be made consistently with the rules of natural justice. The purpose of the rules of natural justice is to prevent miscarriage of justice, the rules should be made applicable to administrative enquiries also. On examination of contention of learned Senior Advocate appearing for the petitioner and taking note of concession made by the learned Senior Standing Counsel defending the order of the AAAR, it is found that the Order dated 27.07.2021, which is sought to be set aside invoking extraordinary jurisdiction under Article 226/227 of the Constitution of India for want of confrontation, as one of the facets of the principles of natural justice, does not transpire that the AAAR has disclosed the material contained in the report submitted by the Superintendent of CGST & Central Excise, Sambalpur-I Range to the Assistant Commissioner, CGST & Central Excise, Sambalpur-I Division vide Letter dated 27.04.2021, to the petitioner. Therefore, it is safe to say that the petitioner had been deprived of reasonable and fair opportunity to submit its explanation. While it is not deniable that the authority is entitled to conduct enquiry and collect material behind the back of the petitioner and even the authority need not disclose to the petitioner the source of any adverse material in his possession, which he seeks to utilize against the petitioner, yet the petitioner is expected to meet such adverse materials and thereby save himself. Therefore, confrontation of such adverse material intending to be used to the detriment of the petitioner was required to be confronted to the petitioner by the AAAR. This Court, therefore, sets aside Order dated 27.07.2021 passed by the Odisha Appellate Authority for Advance Ruling (Annexure-8) being absolutely indefensible and, therefore, it does warrant interference. Hence, said Order is set aside and the matter is remitted to the Odisha Appellate Authority for Advance Ruling for taking fresh decision after due compliance of the principles of natural justice. The writ petition stands disposed of.
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