The failure to provide an opportunity for personal hearing before issuing adjudication orders constitutes a violation of the principles of natural justice, necessitating quashing of such orders.

JUDGMENT :

1. These writ petitions involve identical facts and the same are disposed of by this common order.

2. The petitioner-firm has approached this Court for quashing of the adjudication order including summary of demand passed by adjudicating authority i.e. 5^th Respondent, wherein adjudication orders have been passed under Section 74 of the Jharkhand Goods and Services Tax Act, 2017 [hereinafter referred to as ‘JGST Act, 2017’ for short] without granting any opportunity of personal hearing to the petitioner which is in utter defiance of statutory provisions i.e. JGST Act, 2017.

W.P.(T) No. 6027 of 2024

3. The brief facts of the case are that petitioner is primarily engaged in the business of trading of lubricant, bearing scraps and different type of iron materials and is registered under the provisions of Goods and Services Act. For the period 2023-24, petitioner purchased goods from various registered dealers including the 6^thRespondent-M/s. A.S. Enterprises and duly discharged liability of GST of Rs.33,24,615/-. The purchase of said goods were through banking channel and necessary tax invoices, e-way bills, lorry receipts etc. were issued by the selling dealer and petitioner availed Input Tax Credit of the tax amount of Rs. 33,24,614.90. However, Input Tax Credit availed by the petitioner was initially blocked under Rule 86A(1)(a)(i) of Jharkhand Goods and Services Rules, 2017 on the ground that the 6^th Respondent-M/s. A. S. Enterprises, is a non-existing dealer.

4. Thereafter, inspections were carried out in the business premises of petitioner and, subsequently, vide Process No. 581 dated 05.06.2024, show cause notice was issued to the petitioner under Section 74(1) of JGST Act, 2017, directing the petitioner to show cause as to why Input Tax Credit amounting to Rs. 33,24,614.90 be not recovered from it along with interest and penalty. In the said show cause notice, date of compliance was fixed on 4^th July, 2024 and, thereafter, on 10^th July, 2024 itself adjudication order was passed fastening liability of tax, interest and penalty upon the petitioner.

W.P.(T) No. 6028 of 2024

5. The facts of the present writ application are almost identical to facts of W.P.(T) No. 6027 of 2024. Petitioner-firm for the period 2023- 24, purchased goods from the 6^threspondent and duly discharged the tax liability through banking Channel and on the strength of tax invoices, e- way bills, lorry receipts etc. availed Input Tax Credit of Rs.7,35,097.20/-.

6. Initially, Input Tax Credit of the petitioner was blocked by the 5^thRespondent under Rule 86A(1)(a)(i) of Jharkhand Goods and Services Rules, 2017 and, thereafter, the 5^thRespondent issued show cause notice dated 04.04.2024to the petitioner under Section 74(1) of JGST Act, 2017, directing to show cause as to why Input Tax Credit availed by the petitioner for a sum of Rs. 7,35,097.20/- be not recovered from the petitioner along with interest and penalty. In the said show cause notice, date of compliance was fixed on 3^rd May, 2024 and, pursuant thereto, adjudication order dated 05.06.2024 was passed.

7. Counsel appearing for the petitioners invited attention of this Court to the order-sheets in both the cases and highlighted that the order-sheets including adjudication orders would reveal that adjudication orderswere passed in flagrant violation of the principles of natural justice as on the first date fixed pursuant to show cause notice itself adjudication orderswere passed. While referring to t