Laxmidhan Stores and Anr. Vs State of West Bengal and Ors. (Calcutta High Court)
The Calcutta High Court adjudicated a writ petition challenging an appellate order dated October 30, 2023, which had affirmed an adjudication order dated March 27, 2023 passed under Section 74 of the West Bengal Goods and Services Tax Act, 2017. The dispute arose from a show cause notice issued to the petitioner on June 3, 2022, alleging wrongful availment of input tax credit amounting to Rs. 3,06,247.50 for transactions with a supplier that was later found to be non-existent and whose GST registration had been cancelled retrospectively.
The petitioner had submitted a reply to the show cause notice before the Adjudicating Authority. However, no opportunity of personal hearing was provided at that stage. Despite considering the reply, the Adjudicating Authority proceeded to pass an order demanding tax, interest, and penalty. Aggrieved by this, the petitioner filed an appeal under Section 107 of the Act. At the appellate stage, the petitioner was granted an opportunity of hearing, but the Appellate Authority rejected the appeal and upheld the original order.
Before the High Court, the petitioner argued that the absence of a personal hearing at the adjudication stage constituted a violation of the principles of natural justice and statutory requirements, particularly under Section 75(4) of the Act. It was contended that such a defect could not be cured merely by granting a hearing at the appellate stage.
