2025 (5) TMI 901 - HC - GST

Violation of Principles of natural justice - opportunity of hearing not provided - rejection of petitioner s appeal solely on the ground of delay under Section 107 of the GST Act - HELD THAT - Principle is fairness and reasonableness of procedure and Judicial Review has been elaborately considered by the Hon ble Supreme Court in the case of Madhyamam Broadcasting Limited Vs. Union of India Ors. 2023 (7) TMI 1010 - SUPREME COURT . This decision would assist the case of the petitioner in not providing copy of the notice timely through fair mode. On this short ground petitioner has made out a case so as to interfere with the order of the appellate authority dated 19.03.2024 as well as order of determination of tax dated 08.02.2021 and are set aside. Petitioner is now aware of the show cause notice and reminders therefore petitioner is hereby directed to furnish detailed explanation/ reply within a period of six weeks from the date of receipt of this order. Thereafter the concerned authority shall proceed to pass further orders insofar as determination of tax if any and in accordance with law. The above exercise shall be completed by the official respondents within a period of two months from the date of receipt of petitioner s explanation/ reply to the show cause notice/ additional show cause notice etc. Petition allowed.

Summary

The Patna High Court, through Justice P. B. Bajanthri, allowed the writ petition challenging orders dated 08.02.2021 and 19.03.2024 issued without affording the petitioner an opportunity of hearing, thereby violating the principles of natural justice and Section 107(8) of the BGST Act. The appellate authority had rejected the petitioner's appeal solely on the ground of delay under Section 107 of the GST Act. The Court emphasized that uploading show cause notices on the portal without informing the taxpayer does not constitute a fair procedure, referencing the Supreme Court's ruling in Madhyamam Broadcasting Limited v. Union of India (2023) 13 SCC 401 on fairness and reasonableness of procedure. On this basis, the impugned orders were set aside. The petitioner was directed to submit a detailed reply within six weeks, after which the authorities must pass orders on tax determination within two months in accordance with law.