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2023 Supreme(All) 2482
IN THE HIGH COURT OF ALLAHABAD
PRITINKER DIWAKER, C.J., ASHUTOSH SRIVASTAVA, J.
M/S Sri Bala Ji Marbles - Petitioner
Versus
State of U.P. and Another - Respondents
WRIT TAX NO. 962 OF 2023.
Decided On : 11-08-2023
For the Petitioner: Aditya Pandey
For the Respondent: C.S.C.
Subject
Administrative Law - Taxation
Act Referred
Headnote
(B) Principles of natural justice - Right to a fair hearing and due process - Ex-parte orders must provide an opportunity for the affected party to be heard. (Paras 1-3)
Facts of the case:
The petitioner contended that a penalty of Rs. 2,34,450/- was imposed without serving the necessary notice dated 07.10.2021, leading to an ex-parte order.
Findings of Court:
The High Court determined that the order was ex-parte, thus lacking proper procedure and due process.
Issues: The main issue was whether the petitioner was given a fair opportunity to be heard before the penalty was imposed.
Ratio Decidendi: The court ruled that adherence to principles of natural justice demands that all parties must be given due notice and an opportunity to be heard before adverse actions are taken against them.
Result: Writ petition allowed, and the ex-parte order was set aside.
JUDGMENT
It is the case of the petitioner that the notice dated 07.10.2021 Form GST DRC-01 under Rule 142(1) of CGST Act was never served upon the petitioner and consequent thereto an ex-parte order has been passed whereby a sum of Rs. 2,34,450/- has been imposed upon the petitioner as penalty.
2. From the tenor of the order that has been passed by the Respondent No. 2, it is more than apparent that the order is an ex-parte order.
3. In such view of the matter, since prima facie, the order impugned is an ex-parte order, we set aside the same and remand the matter back to the Assistant Commissioner, respondent no. 2 to pass fresh orders after giving due notice and opportunity of hearing to the petitioner.
4. The writ petition is accordingly disposed of.
5. It is also expected that the petitioner shall cooperate in the proceeding and shall not take any unnecessary adjournment.
