Hudson Insurance Brokers Private Limited Vs Union Territory of Chandigarh And Others (Punjab and Haryana High Court)
Non-speaking GST Orders Violate Natural Justice Principles and are Liable to be Set Aside: Punjab and Haryana High Court
The Punjab and Haryana High Court held that a GST assessment order passed without considering the taxpayer’s reply and without assigning reasons is a non-speaking order that violates the principles of natural justice and is liable to be set aside. The petitioner had submitted detailed replies along with supporting documents in response to notices issued under Sections 61 and 73 of the CGST Act, yet the adjudicating authority merely acknowledged the reply and rejected it without discussing the contentions or evidence. The Court observed that quasi-judicial authorities are duty-bound to examine the taxpayer’s submissions and provide reasoned findings for accepting or rejecting them. Although an appellate remedy was available, the Court reiterated that writ jurisdiction under Article 226 can be invoked where there is a breach of natural justice. Accordingly, the impugned GST demand order was quashed, and the authority was directed to grant a personal hearing and pass a fresh, reasoned order after duly considering the petitioner’s reply and supporting documents.
Facts:
Hudson Insurance Brokers Private Limited (“the Petitioner”), a company engaged in the business of insurance brokerage and advisory services and duly registered under GST, filed returns for the relevant period.
