NS AGRO AND ENGINEERING PRODUCTS

Versus

STATE OF U.P & ORS.

Citation:  2024 taxo.online 962

In the case of NS Agro and Engineering Products v. State of U.P & Ors., the petitioner challenged an order passed under Section 74(9) of the Central Goods and Services Tax Act, 2017 (CGST Act), emphasizing the denial of an opportunity for a personal hearing by the Deputy Commissioner, Commercial Tax Department. The petitioner argued that Section 75(4) mandates granting a personal hearing upon a written request or when an adverse decision is contemplated.

The High Court, led by Justices Saumitra Dayal Singh and Donadi Ramesh, observed a fundamental violation of procedural law wherein the adjudicating authority failed to provide the petitioner with a personal hearing before passing the adjudication order. The court stressed the importance of adhering to principles of natural justice, particularly the right to be heard, which forms the bedrock of fair administrative action.

The respondent attempted to rely on the availability of an alternative remedy under Section 107 of the CGST Act, arguing against the writ petition. However, the court noted that such a bar on seeking writ relief cannot be applied when there is a blatant violation of natural justice. The court also referenced an office memo highlighting systemic issues within the tax department regarding the lack of personal hearings, underscoring the need for corrective measures.

Consequently, the court set aside the impugned order and remanded the matter to the Deputy Commissioner, Commercial Tax Department, Sikandrabad, Bulandshahar, directing a fresh adjudication in compliance with the law and ensuring the petitioner's right to a fair hearing. The judgment reaffirms the judiciary's role in safeguarding procedural fairness and underscores the obligation of administrative authorities to conduct proceedings in accordance with statutory provisions and principles of natural justice.

This judgment underscores the judiciary's commitment to upholding procedural fairness in administrative proceedings under the GST regime. By invalidating the order due to the absence of a personal hearing, the court reaffirms the importance of adherence to statutory requirements and principles of natural justice. It highlights the pivotal role of personal hearings in ensuring that decisions are made after affording parties an opportunity to present their case, thereby promoting transparency and accountability in tax administration.

The directive for disciplinary actions against erring officials underscores the court's proactive approach in preventing future violations and ensuring the proper conduct of adjudication proceedings.

 

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