Pithamber Distributors Vs Assistant Commissioner (ST)
Date: April 29, 2024
Subject Matter
Show cause notice and adjudication order cannot be issued on the same date
Summary
The Madras High Court ruled in the case of Pithamber Distributors vs Assistant Commissioner, emphasizing the importance of procedural fairness in administrative proceedings under the GST Act. The court set aside an order issued on the same date as the show cause notice, stating that it lacked procedural fairness and violated the petitioner's right to be heard. The court concluded that the order was unsustainable, emphasizing the need for a reasonable opportunity to be provided to the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order dated 31.12.2023 is challenged in this writ petition. Proceedings were initiated against the petitioner by issuing show cause notice dated 31.12.2023. The impugned order was also issued on the same date.
2. Learned counsel for the petitioner submits that the facts speaks for themselves and that both the show cause notice and the impugned order were issued on the same date. He further submits that the show cause notice was issued in breach of sub-section (2) of Section 73 of the applicable GST enactments.
3. Mr.T.N.C.Kaushik, learned Additional Government Pleader, accepts notice for the respondent.
4. On examining the documents placed on record, the contention of learned counsel for the petitioner that a reasonable opportunity was not provided is liable to be accepted. Since both the show cause notice and impugned order were issued on the same date, the impugned order is unsustainable.
5. Consequently, impugned order dated 31.12.2023 is set aside by leaving it open to the respondent to initiate proceedings in accordance with law.
6. W.P.No.11337 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.Nos.12431 and 12432 of 2024 are closed.