Swadhin Bose Vs Joint Commissioner Of CGST (Calcutta High Court)
In a recent decision, the Calcutta High Court addressed an intra-court appeal by Swadhin Bose challenging an adjudication order under the CGST Act. The court scrutinized the handling of a demand notice issued to the appellant, which led to significant penalties. The case highlights procedural irregularities and issues related to the principles of natural justice in tax adjudication.
The appeal was directed against the order dated 15th May 2024, which upheld a penalty of Rs. 1,60,03,167 and an additional fine of Rs. 10,000 imposed on Swadhin Bose. The appellant contended that the adjudicating authority made erroneous findings regarding the nature of the business activity for which the registration was obtained. Specifically, the adjudicating authority wrongly categorized the appellant’s service as interior decoration instead of advertising agency services, as per the show cause notice. This misclassification was one of the key grounds for the appeal, along with allegations of non-compliance with natural justice principles.
The appellant’s defense was hindered by the ill-health of the proprietor, who could not provide necessary instructions or appear for the hearing due to hospitalization. Consequently, the reply submitted to the show cause notice was not adequately considered. The court acknowledged that the adjudicating authority did not address the appellant’s response and failed to provide a fair opportunity for a personal hearing.
