Case Law Details
Technosys Security System Private Limited Vs Commissioner (Madhya Pradesh High court)
If Adverse Decision Is Contemplated, Opportunity Of Hearing Should Be Provided U/S 75(4) GST Act Even When Not Requested: MP HC
While ruling on a very significant legal point pertaining to the Goods and Services Tax (GST) Act, it must be taken note of that the Madhya Pradesh High Court at Jabalpur in a most learned, laudable, landmark, logical and latest judgment titled M/S Technosys Security System Private Limited vs Commissioner Commercial Taxes in Writ Petition No. 13618 and 13667 of 2023 that was pronounced most recently on December 5, 2023 has minced just no words to state succinctly in no uncertain terms which must be definitely always abided that an opportunity of hearing is required to be given, even in those cases where no such request is made but adverse decision is contemplated. It must be noted that this leading case concerned M/S Technosys Security System Private Limited which is a company that was issued a show-cause notice by the Deputy Commissioner of State Tax who is the second respondent. It must be mentioned here that in a grave violation of what is laid down in Section 75(4) of the GST Act, we saw how the authorities without granting the company an opportunity for a hearing flouting the laid down norms and principles of natural justice initiated the proceedings against M/S Technosys Security System Private Limited. In this backdrop, we thus see that the Court very rightly allowed the petition and quashed the proceedings against the company which were initiated after show cause notice citing a violation of the principles of natural justice. Very rightly so!
At the very outset, this brief, brilliant, bold and balanced judgment authored by Hon’ble Mr Justice Sujoy Paul for a Division Bench of the Madhya Pradesh High Court at Jabalpur sets the ball in motion by first and foremost putting forth in para 2 that, “Regard being had to the similitude of the questions involved, on the joint request of learned counsel for the parties, the matters are analogously heard and decided by this common order.”
As we see, the Division Bench specifies in para 3 that, “This common order will decide both the writ petitions wherein the petitioners have called in question the show cause notices and the impugned orders whereby the tax and interest and penalty have been imposed on the petitioners.”
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