2024 (8) TMI 1310 - HC - GST

Principles of natural justice - Validity of SCN issued u/s 73(1) of the Central Goods and Services Act 2017 - petitioner received the notice only on the date of personal hearing fixed - HELD THAT - The respondents admittedly thought it proper to give third opportunity of personal hearing and accordingly issued the notice dated 13.03.2024. However the there are substance in the argument of learned counsel for the petitioner that said opportunity became illusory for the petitioner because of service of notice on the same date. The respondents have not paid any heed to the petitioner s prompt communication dated 19.03.2024 informing that notice is received on the date of hearing and another opportunity may be granted. It is deemed proper to set aside the OIO which has been passed without considering the petitioner s communication (Annexure P3) which shows that the notice was received by him on the date of hearing itself - petition disposed off.

Summary

Issues:
- Show-cause notice issued under Section 73(1) of the Central Goods and Services Act, 2017
- Failure to attend scheduled personal hearings
- Allegation of violation of principles of natural justice
- Interpretation of statutory provisions regarding personal hearings
- Setting aside the Order-in-Original (OIO) and fixing a new date for personal hearing

Analysis:
The judgment pertains to a show-cause notice issued under Section 73(1) of the Central Goods and Services Act, 2017 against the petitioner. The petitioner failed to attend scheduled personal hearings on 28.02.2024 and 07.03.2024. Despite requesting for another opportunity due to receiving the notice on the date of the hearing, the Order-in-Original (OIO) was passed on 23.04.2024. The petitioner argued for observance of principles of natural justice, contending that the respondents should have fixed a suitable next date for personal hearing. The learned Senior Standing Counsel for CBIC argued that the statutory provision regarding personal hearings was followed correctly.

The court considered the arguments and found that the petitioner's opportunity for personal hearing became illusory due to the notice being served on the same date as the hearing. The court noted that the respondents did not consider the petitioner's communication requesting another opportunity. In light of these circumstances, the court set aside the OIO and decided to fix a new date for personal hearing to ensure the principles of natural justice are upheld. The court directed the petitioner to appear before respondent No.1 on 08.08.2024 at 11.00 AM, which would be treated as the last personal hearing. The adjudicating authority was given the flexibility to fix a further date if needed.

The judgment concluded by disposing of the Writ Petition without expressing any opinion on the merits of the case and without imposing any costs. It was also mentioned that any pending interlocutory applications would stand closed.