Adjudication order passed straightway after issuance of SCN without granting opportunity of hearing to be quashed: HC

Case Details: Om Prakash Store v. State of Jharkhand - [2022] 144 taxmann.com 30 (Jharkhand)

Judiciary and Counsel Details

• • Aparesh Kumar Singh & Deepak Roshan, JJ.
  • Sumeet Gadodia & Shilpi Sandil Gadodia, Advs. for the Petitioner.
  • P.A.S. Pati, G.A.-II, for the Respondent.

Facts of the Case

The petitioner was a registered dealer and engaged in the business of trading of Jaggary, Mahua and Krana Goods. An inspection was carried out in the premises of petitioner and thereafter summary of show cause notice in Form GST DRC-01 was issued negligently without mentioning date, time and venue and straightway, after issuance of DRC-01, adjudication order under section was passed. The petitioner filed writ petition and contended that no show cause notice, summary of show cause notice, adjudication order and summary of order was ever served to the petitioner.

High Court Held

The Honorable High Court observed that immediately after issuance of SCN under DRC-01, adjudication order under section 73 was passed and also summary of order in Form GST DRC-07 was issued. Moreover, the petitioner came to know about adjudication proceeding and orders passed by GST authorities only when bank attachment notice contained in GST DRC-13 was issued to banker of petitioner by attaching bank account of petitioner.

The Court also noted that proper opportunity of hearing was not afforded to petitioner before adjudication order was passed. Therefore, it was held that the impugned order was liable to be quashed and matter was to be remitted back to Adjudicating Authority to issue fresh show cause notice.