Phuljhora Agro Plantation Pvt. Ltd. & Anr. Vs The Union of India & Ors. (Calcutta High Court)
The petitioners challenged the legality of an ex parte order dated 02.11.2023 passed under Section 74 of the GST Act, raising a tax demand including penalty of ₹5,26,832 for the period July 27, 2017 to March 2019 (financial year 2017-2018). The show cause-cum-demand notice dated 19.05.2023 was issued without prior notice in Form GST ASMT-10 under Section 61 and without granting adjournment, allegedly contrary to Section 75(5) of the Act.
The petitioners contended that no opportunity of hearing was granted before passing the adverse order, violating principles of natural justice. They further argued that the show cause notice was uploaded in the “Additional Notices and Orders” tab instead of the appropriate tab, contrary to Section 169, and was neither served by registered post nor email. The State authorities did not rebut the claim of non-service with documentary proof.
Reliance was placed on prior Calcutta High Court decisions holding that improper communication through the portal and failure to grant personal hearing vitiate proceedings. The State argued that the order was appealable and that three opportunities of hearing were granted, which the petitioners did not attend.
