2024 Taxo.online 433
In a watershed ruling, a Cooperative Society registered under the West Bengal Cooperative Societies Act, 1973, has successfully challenged an adverse order dated 06.11.2023. The petitioner, dedicated to cooperative business for underprivileged individuals, contested allegations of discrepancies in their returns, which led to the issuance of a notice under Form GST ASMT-10 and an intimation under Section 73(5) of the said Act by the respondents.
Despite the petitioner's diligent efforts to respond to the show cause notice within the stipulated timeline, the final order determining liability under Section 73(9) was issued without affording them an opportunity for a hearing. The Court, upon careful examination, emphasized the statutory provision mandating an opportunity to respond before the department takes any adverse decision under Section 73(9).
Despite the petitioner's plea for an adjournment due to legitimate reasons, the request was purportedly rejected without due consideration, citing the granting of multiple adjournments—a claim not substantiated by the facts. This, the Court ruled, amounted to a violation of principles of natural justice.
While the respondents argued the availability of an alternative appeal process, the Court maintained that such recourse cannot rectify an ex parte order's injustice, particularly when the petitioner's defense is not adequately represented.
Consequently, the Court invalidated the directive for tax recovery issued by the respondents and instructed the petitioner to submit their response to the show cause notice by 15th March, 2024. The respondents were further directed to schedule a personal hearing promptly thereafter. Notably, the Court barred any further extension or adjournment requests by the petitioner, underscoring the finality of the ruling.
With this ruling, the Court reaffirms the importance of procedural fairness and upholds the rights of cooperative entities to a fair and transparent adjudication process, setting a significant precedent for future cases.
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