Facts of the Case

The petitioner, M/s Arihant Metallick World, challenged an order dated 31.01.2022 passed by the State GST authorities, namely the Assistant Commissioner of State Tax, Bureau of Investigation (South Bengal), Barrackpore Zone. The petitioner's grievance was that the impugned order was passed adverse to its interest without furnishing copies of the documents that were relied upon against it, thereby denying it a fair opportunity to respond before the adjudication was finalised.

Issues Involved

  1. Whether passing an adverse GST adjudication order without supplying the petitioner copies of the documents relied upon against it violates the principles of natural justice.

Petitioner's Arguments

  • Documents that were used against the petitioner in passing the adverse order were never furnished to it, preventing an effective response before the order was passed.

Respondent's Arguments

  • Learned advocate for the State could not contradict the petitioner's factual assertion that the relevant documents had not been supplied.

Court Order / Findings

  • The Court held that the non-supply of documents relied upon against the petitioner, which is an established fact on record and uncontroverted by the State, amounted to a violation of the principles of natural justice.
  • Without going into the merits of the adjudication order, the impugned order dated 31.01.2022 was set aside solely on the ground of the natural-justice violation.
  • The matter was remanded to the authority concerned to pass a fresh order in accordance with law, as a reasoned and speaking order, after observing the principles of natural justice, within eight weeks from communication of the Court's order.

Important Clarification

  • Failure to furnish a taxpayer copies of documents that are relied upon against it in a GST adjudication proceeding is a fundamental breach of natural justice, sufficient by itself to set aside the resulting order without examining its merits.
  • Such matters are typically remanded with a fixed timeline for the authority to pass a fresh reasoned and speaking order after curing the procedural defect.

Sections Involved

  • Article 226, Constitution of India — writ jurisdiction invoked to challenge the adjudication order on natural-justice grounds.
  • West Bengal Goods and Services Tax Act, 2017 / Central Goods and Services Tax Act, 2017 — governs the underlying adjudication proceedings before the Bureau of Investigation.

Decision – In Favour of

Disposed of with directions — the adjudication order was set aside purely on natural-justice grounds and the matter remanded for a fresh reasoned order within eight weeks. No view was expressed on the merits of the underlying tax demand, making this a procedural win for the Assessee.

Related Case Laws

  • M/s Aishra Technofab Engineers vs Union of India, CWJC No. 3212 of 2022, Patna High Court — GST demand order quashed for want of natural justice.
  • M/s Frontline (NCR) Business Solutions Pvt Ltd vs State of Bihar, CWJC No. 3570 of 2022, Patna High Court — GST appellate order quashed for not considering material on record.

Case Details

  • Court: High Court at Calcutta, Constitutional Writ Jurisdiction, Appellate Side
  • Case No.: WPA No. 2753 of 2022
  • Coram: Hon'ble Mr. Justice Md. Nizamuddin
  • Date of Order: 07.03.2022

Link to Download the Order

https://mytaxexpert.co.in/uploads/1787074652_4598compressed.pdf

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