Prity Dokania sole proprietor of M/s Samridhi Enterprises Vs State of Jharkhand (Jharkhand High Court)
In the case of Prity Dokania Vs State of Jharkhand, multiple petitioners, including Prity Dokania, challenged various adjudication orders and subsequent proceedings issued under the Jharkhand Goods and Services Tax (JGST) Act, 2017. The common contention in these writ petitions revolved around the lack of proper show cause notices as required by Section 74(1) of the JGST Act. Instead of a formal notice, summary orders in Form DRC-07 were issued, without detailed explanations of the charges or providing relied-upon materials. The petitioners argued that this violated the principles of natural justice, and the absence of show cause notices undermined the legality of the adjudication process.
During the hearings, it was highlighted that many petitioners were not given a proper opportunity to contest the allegations, with some orders issued without following the requisite legal procedures. Furthermore, the State Tax Officer’s actions, including reliance on external third-party statements without allowing for cross-examination, were deemed unjust. The respondents, representing the State, countered that the petitioners had bypassed the statutory appeal process under Section 107 of the JGST Act. However, the court found that the state’s failure to follow due process in issuing show cause notices or detailing accusations in the DRC-01 forms led to violations of the petitioners’ rights. Ultimately, the Jharkhand High Court underscored the need for adherence to procedural fairness and natural justice in tax adjudication processes.
