U.S.Technology International Pvt. Ltd Vs State of Kerala (Kerala High Court)
Kerala High Court held that appellate authority to adopt liberal view and accept document since appropriate opportunity not granted by adjudicating authority to produce documents. Accordingly, writ disposed of and matter remanded back.
Facts- The petitioner is a registered taxpayer under the provisions of CGST/KGST Act 2017. The grievance highlighted in this writ petition is against the order passed by the 3rd respondent, which was confirmed in the order passed by the 2nd respondent, the Appellate Authority. The case of the petitioner is that, the petitioner was denied a proper opportunity to contest the matter before the adjudicating authority, as a reasonable time was not granted to produce the necessary documents to controvert the allegations raised in the Show Cause Notice.
Conclusion- Held that, as per the Sub Rule 1(c) of 112, if the appellant was prevented by sufficient cause from producing the evidence before the adjudicating authority, such documents can be accepted. In this case, the specific case of the petitioner is that, since, the time granted to the petitioner to produce the documents, was very short, they could not collect all these documents despite their earnest efforts. Considering the voluminous nature of the transactions referred to in the show cause notice, in response to which the petitioner was required to furnish a reply, I find that, the explanation offered by the petitioner that they could not collect all the details required for furnishing a reply to the same, within the permitted time, is a plausible one. Therefore, it could be a case which falls within the circumstances referred to in Sub-Rule 1(c) of 112. This Court has already observed that, the adjudicating authority did not grant a reasonable opportunity to the petitioner for submitting a reply, while completing the assessment.
