The Delhi High Court held that the Proper Officer is empowered to grant three adjournments if sufficient cause is shown under the Central Goods and Services Tax Act, 2017 ( CGST Act ).
The Petitioner impugned the order dated 19.12.2023 whereby the impugned Show Cause Notice dated 23.09.2023, proposing a demand of Rs.15,19,68,460.00/- against the petitioner had been disposed of and demand including penalty has been raised against the petitioner. The order has been passed under Section 73 of the Central Goods and Services Tax Act, 2017.
The counsel for Petitioner submitted that Petitioner had replied to the impugned Show Cause Notice on 23.10.2023 seeking additional time for furnishing a detailed reply and an opportunity of personal hearing and that a reminder dated 12.12.2023 was issued to the Petitioner providing a final opportunity for personal hearing. Pursuant to the said reminder, Petitioner had replied to the reminder on 18.12.2023 seeking time to furnish reply and time to appear for personal hearing. However, the impugned order dated 19.12.2023 does not take into consideration the request submitted by the Petitioner for extension of time and is a cryptic order.
Further, placing reliance on Section 75(5) of the CGST Act, the counsel for Petitioner submitted that according to the said Section, Petitioner is liable for grant of adjournment of personal hearings up to three times. However, despite the Petitioner seeking time for personal hearings on 23.10.2023 and 18.12.2023, the Petitioner was not provided an opportunity of personal hearing which is against the principles of natural justice.
A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “Though in terms of Section 75 (5) of the CGST Act three adjournments maybe granted, it is not mandatory for the proper officer to grant three adjournments. Adjournment is not a right. Said provisions empowers the proper officer to grant upto three adjournments, if sufficient cause is shown. It would be dependent on the facts of each case whether sufficient cause has been shown or not for exercise of the discretion to adjourn.”
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