In its recent order, the Calcutta High Court (HC) held that the Non-speaking order under GST was not valid and set aside the order under section 129 of the West Bengal Goods and Service Tax (WBGST) Act
Mr Himangshu Kr. Ray, Mr Subhasish Poddar appeared on behalf of the petitioner and Mr A. Ray, Mr S. Mukherjee, Mr D. Ghosh, and Mr D. Sahu appeared on behalf of the State.
Maxxcab Wires & Cables Pvt. Ltd. & Anr, the petitioner challenged the notice dated 27th October 2022 and subsequent order dated 4th November 2022 under Section 129(3) of the WBGST Act, on the ground that the same is a non-speaking order.
Further submitted that the impugned notice itself is in total non-application of mind since the notice was issued on 27th October 2022 and the petitioner was asked to appear before the adjudicating authority on 3rd October 2022 which had already expired long back. Petitioner also prays for the release of the goods and vehicle in question, on the ground that there was a breakdown of the vehicle and the period was less than 24 hours.
It was viewed that the notice required to be served under Section 129 (3) has not been served properly. Accordingly, there has been a clear violation of the principles of natural justice.
The impugned order dated 4th November 2022 was set aside by Justice Nizamuddin and the matter was remanded back to the adjudicating authority concerned to pass a fresh speaking order after giving an opportunity of hearing as well as allowing the petitioner to make fresh appropriate representation against the aforesaid show-cause notice dated 27th October 2022.
While disposing of the petition, the Court held that “the respondents shall consider the prayer for the release of the goods and vehicle of the petitioner in accordance with the law.”
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