Calcutta HC Quashes GST Order Rejecting Rectification Applications even without Providing  Opportunity of Hearing [Read Order]

The Calcutta High Court, in its recent case, has quashed the Goods and Services Tax (GST) order rejecting rectification applications even without providing an opportunity for a hearing.

Upendra Mahato, the petitioner did not respond to the show cause notice dated 8.9.2023 which has been uploaded in statutory form GST DRC 01 on 18.9.2023 as he did not file any reply within the time permitted, but had sent a reply dated 15.12.2024 but by then the order in original was passed by the authority on 14.12.2023. In the said order it has been recorded that in order to comply with the principles of natural justice opportunity of personal hearing was given to the appellant but they did not attend the personal hearing nor submitted any reply to advocates for the parties and carefully perused the materials placed on record.

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Therefore, by the time the order was uploaded the appellant's reply dated 15.12.2023 was very much available with the assessing officer.However, this appears to have been not taken into consideration.  Subsequently the appellant filed an application for rectification under Section 161 of the CGST Act, 2017 dated 12.7.2024. The said application was sent by speed post and shown to be delivered which was uploaded in the online portal on 26 January, 2024 and the said application was also sent by registered post by way of abandon caution.

In the application for rectification the appellant had stated that he had submitted detailed reply on 15.12.2023 online, but the order dated 14.12.2023 which was uploaded on 20.12.2023 it has been stated that no reply has been filed and the appellant did not attend the personal hearing.

Further, the appellant submitted that in terms of the audit report drawn under Section 65(6) of the CGST Act, 2017 dated 19.1.2023 by the CGST, Siliguri Circle-V for the financial year 2017-18, 2018-19 and 2019-20 all tax, interest and penalty have been. fully paid through DRC-03 and final observation letter (GST ADT-02) dated 19 January, 2023 has been received from the CGST, Siliguri Circle-V and, therefore, the appellant prayed for rectification of the order and dropped the entire proceedings.

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This application was rejected by order dated 21.11.2024.14. It is submitted by the advocate for the appellant that though in the order it is stated that reasons have been attached as annexure, the appellant was not communicated with the reasons and what was attached was the order in original alone.

The bench of Chief Justice T. S. Sivagnanam and Justice Chaitali Chatterjee found that the appellant did not have adequate opportunity to put forth the submissions before the authority. The court remanded the matter back to the adjudicating authority to take a fresh decision on merits and in accordance with law..

In the result, the appeal is allowed and the order passed in the writ petition is set aside. It was further held that the appellant shall submit a comprehensive reply to the show cause notice along with all annexures, documents and details within two weeks. from the date of receipt of the server copy of this order after which the assessing officer shall give an opportunity of personal hearing to the authorized representative of the assessee and read with the assessment in accordance with law and complete the same preferably within 30 days.

To Read the full text of the Order CLICK HERE

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