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VIBHU BAKHRU, AMIT MAHAJAN
HT Media Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT
Vibhu Bakhu, J. The petitioner has filed the present petition impugning an order dated 03.04.2023 (hereafter `impugned order') passed by respondent No. 2.
2. The petitioner also impugns the Show Cause Notice dated 01.08.2022 (hereafter `impugned Show Cause Notice') issued under Section 73 of the Delhi Goods and Services Tax Act, 2017 (hereafter `the Act').
3. It is material to note that the impugned Show Cause Notice alleges that "tax has not been paid or short paid or refund has been released erroneously or input tax credit has been wrongly availed", but does not disclose any detailed reasons for proposing the demand.
4. In terms of the impugned notice, the petitioner was to submit its reply by 01.09.2022 and was also informed of a personal hearing scheduled on 19.08.2022 at 11:00 a.m.
5. As apparent from the face of the impugned Show Cause Notice, the same did not clearly specify grounds on which a demand was proposed to be raised. Although, the said Show Cause Notice did indicate a table mentioning the quantum of tax and interest; it is not clear whether the said tabular statement was related to the proposed demand or called upon the petitioner to justify the same.
6.
An opportunity to be heard should be afforded after the noticee has filed a reply, and the noticee should be permitted to place their stand on record before being afforded a hearing.
An unsigned notice or order cannot be considered valid, and the purpose of a Show Cause Notice is to enable the noticee to respond to the specific allegations.
Proper adjudication process and consideration of petitioner's reply before passing an order.
Proper Officer must consider the reply on merits and provide opportunity for clarification or further documents/details before creating demand ex-parte.
The principles of natural justice mandate that a party must be afforded both written and oral opportunities independently, and failure to provide a personal hearing constitutes a procedural deficienc....
Granting an opportunity for response and personal hearing before adjudication based on the peculiar facts and circumstances of the case.
Procedural fairness requires effective notice and personal hearing opportunities, especially in tax assessments, to avoid ex parte orders.
The judgment establishes the requirement of affording a minimum period of 30 days for responding to show cause notices under Section 73 of the CGST Act and emphasizes the need for show cause notices ....
The court emphasized the importance of providing the taxpayer with a fair opportunity to submit relevant documents and have a personal hearing in tax dispute proceedings.
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