Case Law Details
Kec International Limited Vs Union of India (Allahabad High Court)
Introduction: In a recent case before the Allahabad High Court, Kec International Limited contested the cancellation of their GST refund without being afforded an opportunity for a hearing. The court’s decision sheds light on the importance of procedural fairness in such matters.
Detailed Analysis: The petitioner, Kec International Limited, challenged the order passed by the Joint Commissioner (Corporate Circle), State Tax, Saharanpur, which reversed the refund earlier granted to them under the Uttar Pradesh Goods and Services Tax Act, 2017. The crux of the petitioner’s argument lay in the denial of their right to a fair hearing, as mandated by Section 75(4) of the Act.
The impugned order was preceded by a notice and a fixed date for hearing. However, despite the petitioner’s request for a two-week adjournment, supported by an e-filed application, the revenue authority proceeded to reject the application without providing any valid reason. This action, undertaken without affording the petitioner an opportunity for a hearing, was deemed a violation of their statutory right to natural justice.
Section 75(4) of the Act clearly stipulates the right of the petitioner to be personally heard before any adverse order may be passed. The court, recognizing the significance of this provision, held that the impugned order could not be sustained in light of the denial of this fundamental right.
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