Seya Industries Limited Vs State of Maharashtra and Ors. (Bombay High Court)
The Bombay High Court, in Seya Industries Limited Vs State of Maharashtra and Ors., set aside GST adjudication orders on the ground that no opportunity of personal hearing was granted before passing adverse orders. The petitioner argued that the impugned orders were passed without compliance with Section 75(4) of the Central Goods and Services Tax Act, 2017, which mandates granting an opportunity of hearing where an adverse decision is contemplated or where a request for hearing is received. The impugned orders merely recorded that the petitioner had not responded to notices and did not mention whether any hearing was granted or whether the petitioner had failed to attend.
The State submitted that no hearing was granted because the petitioner had not received the notices and had not filed any response. The authorities therefore proceeded on the basis that granting a hearing would serve no purpose.
After hearing both sides, the High Court held that even if the petitioner had not replied to the show cause notices, an opportunity of hearing ought to have been provided before passing adverse orders. Accordingly, without examining the merits of the dispute, the Court quashed the impugned orders and remanded the matter for de novo adjudication. However, since the petitioner had chosen not to file replies to the show cause notices earlier, the Court declined to permit filing of fresh replies at this stage.
