Annu Projects Private Limited Vs Joint Commissioner (Calcutta High Court)
In a ruling on a writ petition filed by Annu Projects Private Limited, the Calcutta High Court has set aside a GST order, citing a violation of statutory procedures by the tax authorities. The company’s appeal, which was initially rejected by the appellate authority due to a marginal delay, was reconsidered by the court. The petitioner’s counsel, Mr. Agarwal, argued that the original show-cause notice and the subsequent tax order were both uploaded under a non-standard “Additional notices and orders” tab, which meant the company was not properly informed. Crucially, the company was also not given an opportunity for a hearing, which is a mandatory requirement under Section 75(4) of the WBGST/CGST Act, 2017.
The court, after hearing the arguments, found that the delay in filing the appeal was marginal. More importantly, it focused on the “admitted position as regards non-compliance of statutory provision.” The court’s decision hinged on the tax department’s failure to provide a mandatory hearing before issuing an ex-parte order. Citing this procedural lapse, the High Court ruled that the order passed under Section 73 was unsustainable. The court’s judgment sets a precedent for the importance of natural justice in tax adjudication. It has remanded the matter back to the adjudicating authority for a fresh decision on the merits of the case. The company has been granted two weeks to respond to the original show-cause notice, after which the tax officer must provide a hearing before disposing of the matter.
