2023 (12) TMI 1452 - HC - GST

Violation of principles of natural justice - ex-parte assessment - order was passed without affording any opportunity of hearing and that the order was not communicated to the petitioner - HELD THAT - A bare look at the order dated 06.05.2022 (Annex.6) reveals that the said order has been passed without affording any opportunity of hearing to the petitioner. Even under the provisions of Section 161 of the Act third proviso requires that where such rectification adversely affects any person the principles of natural justice shall be followed by the authority carrying out such rectification. The order passed definitely adversely affect the petitioner and therefore the same could not have been passed by the respondent without affording any opportunity of hearing to the petitioner. In view of the above fact situation the order dated 06.05.2022 (Annex.6) is quashed and set-aside. The respondent would be free to pass a fresh order after following the provisions of Section 161 of the Act and / or any other applicable provisions in accordance with law. Petition disposed off.

Summary

The Rajasthan High Court, through Justices Arun Bhansali and Ashutosh Kumar, addressed a writ petition challenging the order dated 06.05.2022 (Annex.6) which recalled an earlier order of the same date (Annex.3) allowing the petitioner's application to set aside an ex-parte assessment under Section 174(2B) of the Rajasthan Goods and Service Tax Act, 2017. The petitioner contended that the recall order was passed without affording any opportunity of hearing and was not communicated, causing the petitioner to withdraw a pending Special Leave Petition before the Supreme Court.The respondent relied on Section 161 of the Act read with Section 33 of the RVAT Act, 2003, asserting the power to rectify errors apparent on the record and that the initial order had become final, thus justifying the recall.The Court held that the recall order (Annex.6) was passed without observing the principles of natural justice as mandated by the third proviso to Section 161 of the Act, which requires an opportunity of hearing where rectification adversely affects a person. Since the order adversely affected the petitioner, the failure to provide a hearing rendered the order invalid.Accordingly, the Court quashed and set aside the recall order dated 06.05.2022 (Annex.6) and directed the respondent to pass a fresh order in accordance with Section 161 and other applicable provisions, ensuring compliance with natural justice. The writ petition was disposed of on this basis.