Ex-parte Order Passed Solely Based upon SIB report without Providing Hearing Opportunity: HC
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- Last Updated on 2 May, 2023
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Case Details: Lari Almira House v. State of U.P. - [2023] 149 taxmann.com 476 (Allahabad)
Judiciary and Counsel Details
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- Pankaj Bhatia, J.
- Aloke Kumar for the Appellant.
- C.S.C. for the Respondent.
Facts of the Case
The petitioner was registered under GST. The Deputy Commissioner (SIB) conducted an inspection in the premises and prepared a report. Thereafter, summons were issued to the petitioner which were attended by the petitioner. Subsequently, after about three years, the petitioner was served with a show cause notice on the basis of the SIB survey report. It asked for adjournment and was waiting for the supply of the SIB report, however, an ex-parte order was passed. It filed writ petition and challenge the order.
High Court Held
The Honorable High Court noted that in the instant case, the principle of natural of justice violated as admittedly the SIB report, which was the foundation was never supplied to the petitioner. It is equally well settled that any document proposed to be relied upon should be provided to the assessee prior to conclusion of the proceedings. The Court also noted that no opportunity of hearing was granted to the petitioner before passing the order.
Moreover, Sections 61 and 67 are step towards the initiation of the proceedings but they in itself do not form any basis for concluding the evasion of tax. Mere report of inspection and discrepancy in the scrutiny of returns is not enough to assess and levy the tax. Therefore, it was held that the impugned order was not sustainable and liable to be set aside.
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