Case Law Details
Murtaza B Kaukawala Vs State Of West Bengal And Ors. (Calcutta High Court)
Calcutta High Court sets aside GST appellate order in Murtaza B Kaukawala vs. State of West Bengal, emphasizing natural justice principles. Detailed analysis and judgment included.
Introduction: The case of Murtaza B Kaukawala vs. State of West Bengal and Others before the Calcutta High Court revolves around a dispute regarding an order passed under the provisions of the West Bengal Goods and Services Tax (WBGST) Act. This article delves into the court’s decision to set aside a GST appellate order due to concerns related to natural justice.
Detailed Analysis:
- The writ petitioner had appealed an order by the Assistant Commissioner that made them liable for GST payment. The primary contention was that the principles of natural justice had been violated. The petitioner alleged they were not given an opportunity for personal hearing and that only a summary of the show cause notice had been provided. Moreover, the show cause notice itself was not communicated to the petitioner.
- The government counsel representing the state contended that the assessing officer had indeed granted an opportunity to the appellant, which was not availed.
- After considering the facts and allegations, the court decided to remand the matter back to the Assistant Commissioner. They recommended a fresh examination of the case, emphasizing the need to provide the appellant with a proper opportunity for a personal hearing.
- As a result of this decision, the GST appellate order was set aside. The order passed by the Assistant Commissioner under Section 74 of the GST Act, dated 09.02.2022, was directed to be treated as a show cause notice. The appellant was instructed to submit their reply within three weeks from the receipt of the server copy of this order. Subsequently, the appellant would be granted an opportunity for a personal hearing, after which fresh orders would be passed on merits and in accordance with the law.
Conclusion:
The Calcutta High Court’s decision in the case of Murtaza B Kaukawala vs. State of West Bengal and Others demonstrates the significance of adhering to principles of natural justice in matters concerning the GST Act. By setting aside the GST appellate order and directing a fresh examination of the case, the court has emphasized the importance of providing a fair opportunity to the appellant for a personal hearing and ensuring that due process is followed in accordance with the law.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. This intra court appeal by the writ petitioner is directed against the order passed on 18th July, 2023 in WPA 16299 of 2023 by which the learned Single Bench refused to grant any interim order to the pending writ petition.
2. By the said order, the writ petition was entertained.
3. The petitioner was aggrieved by an order passed by the appellate authority under the provisions of the WBGST Act rejecting the appeal as time barred.
4. The appeal was filed against the order passed by the Assistant Commissioner making the appellant liable for payment of GST. The principal ground on which the appeal has filed before the appellate authority was on the ground of violation of principles of natural justice and that the assessee was not provided any opportunity. Further, it is contended that only the summary of the show cause notice was furnished. However, the show cause notice was not communicated to the petitioner. Furthermore, the opportunity of personal hearing was not granted.
5. The learned Government counsel appearing for the respondent State submitted that though opportunity was granted by the assessing officer, the appellant did not avail the same.
6. Considering the facts and circumstances of the case and the allegations which have been made against the appellant, we are of the view that the matter can be remanded back to the Assistant Commissioner, N.S. Road & M.R. Charge to consider the case afresh after affording an opportunity to the appellant/writ petitioner.
7. With the above observations, this appeal as well as the writ petition stands disposed of and the order passed by the appellate authority is set aside and the order passed by the Assistant Commissioner under Section 74 of the GST Act, 2017 dated 09.02.2022 is directed to be treated as a show cause notice and the appellant is directed to submit his reply within three weeks from the date of receipt of the server copy of this order after which an opportunity of personal hearing shall be granted to the appellant and fresh orders be passed on merits and in accordance with law.
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