Kapton Alloys Private Limited Vs State of Gujarat & Anr. (Gujarat High Court)
The Gujarat High Court has set aside a GST demand order issued against Kapton Alloys Private Limited, citing a violation of the principles of natural justice. The court ruled that the adjudicating authority failed to provide a personal hearing, despite the taxpayer explicitly requesting one. The petition, filed under Articles 226 and 227 of the Constitution, challenged the order dated December 29, 2021, on the grounds that it was issued without considering the taxpayer’s submissions and supporting documents.
Kapton Alloys, engaged in the trading of iron and scrap material, had been issued a summons under Section 70 of the GST Act, to which it duly responded. A show cause notice under Section 74 was later issued, and the company submitted a detailed reply along with supporting documents. However, the adjudicating authority proceeded with the order without granting the requested personal hearing, leading to the challenge before the High Court. The petitioner relied on the Supreme Court’s ruling in Whirlpool Corporation v. Registrar of Trade Marks (1998) 8 SCC 1, which establishes that a writ petition is maintainable when there is a breach of natural justice, even if an alternative remedy exists.
