2025 (7) TMI 457 - HC - GST

Violation of principles of natural justice - though petitioner was granted an opportunity of hearing he failed to appear - SCN issued u/s 73 of the Central Goods Services Tax Act/State Goods and Services Tax Act 2017 - HELD THAT - A perusal of the records Exhibit-P3 Exhibit-P4 and Exhibit-P6 indicates that though petitioner was granted an opportunity of hearing on 06.01.2025 he failed to appear. Thereafter he has now turned around and stated that there is a violation of principles of natural justice in not granting an opportunity of hearing. Failure to avail an opportunity of hearing is different from not granting such an opportunity. When the latter amounts to violation of the principles of natural justice the former is a default on the part of the person who is proceeded against which cannot be regarded as failure to grant an opportunity of hearing. The contention of the petitioner that he had sought 15 days time for hearing is not entirely correct as the objection filed by the petitioner reveals that he sought 15 days time to produce one record. The opportunity of being heard sought for by the petitioner was already granted to him with a date fixed as 06.01.2025. In such circumstances the contention that there was violation of principles of natural justice while passing Exhibit-P6 order is not legally tenable. The contention raised against Exhibit-P6 falls in the realm of disputed facts for which the remedy is to pursue the statutory remedies in accordance with law. Thus reserving the liberty of the petitioner to pursue the statutory remedies available under law against Exhibit-P6 this writ petition is dismissed.

Summary

The Kerala High Court, through Justice Bechu Kurian Thomas, dismissed the writ petition filed under Article 226 challenging an order passed under Section 73 of the Central Goods & Services Tax Act, 2017. The petitioner, a GST-registered wholesale dealer, contended violation of the principles of natural justice, alleging denial of an opportunity of hearing before determination of tax, penalty, and interest.The Court held that the petitioner was duly granted a hearing date (06.01.2025) and time to file a reply, as evidenced by the show cause notice and related documents (Exhibits P3, P4). Although the petitioner requested additional time to submit clarifications, the opportunity of hearing was not denied but fixed in advance. The petitioner's failure to appear on the scheduled hearing date constitutes a default, not a denial of the right to be heard. The Court emphasized that "failure to avail an opportunity of hearing is different from not granting such an opportunity," and therefore, no violation of natural justice occurred.The Court further noted that disputes regarding the impugned order (Exhibit P6) pertain to contested facts, for which statutory remedies under Section 107 of the CGST Act are available. Consequently, the writ petition was dismissed, while liberty was reserved for the petitioner to pursue appropriate statutory remedies.