The order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences. This court quashed and set aside the impugned order.
Section 74 of the CGST Act, 2017- Show cause Notice —– Principle of Natural Justice - The petitioner prayed for quashing order dated 07.03.2020 for the Tax Period July 2019 passed under section 74 of the Act, 2017 without granting of a reasonable opportunity of being heard in the matter and without passing a speaking order; quashing the summary of order dated 07.03.2020 for the Tax Period July 2019 passed in Form GST DRC-07; quashing the order dated 13.02.2021 for the Tax Period July 2019 dismissing the appeal on the ground of delay. The appellate Authority vide order dated 13.02.2021 has rejected the appeal on the grounds of being barred by limitation. The counsel for the Revenue submitted that he has no objection if the matter is remanded to the Assessing Authority for deciding the case afresh. The court observed that the order is bad in law because there is violation of principles of natural justice as no sufficient time was afforded and order passed ex parte in nature, does not assign any sufficient reasons, as to how the officer determined the amount due and payable by the assessee.
Held that:- The Hon’ble High Court set aside the impugned order dated 13.02.2021, the order dated 07.03.2020 passed under section 74 of the Act, 2017 and summary of order dated 07.03.2020.Further directed for de-freezing/de-attaching of the bank account(s), if attached in reference to the proceedings. The Assessing Authority shall decide the case on merits after complying with the principles of natural justice.
The order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences. This court quashed and set aside the impugned order.
Section 74 of the CGST Act, 2017- Show cause Notice —– Principle of Natural Justice - The petitioner prayed for quashing order dated 07.03.2020 for the Tax Period July 2019 passed under section 74 of the Act, 2017 without granting of a reasonable opportunity of being heard in the matter and without passing a speaking order; quashing the summary of order dated 07.03.2020 for the Tax Period July 2019 passed in Form GST DRC-07; quashing the order dated 13.02.2021 for the Tax Period July 2019 dismissing the appeal on the ground of delay. The appellate Authority vide order dated 13.02.2021 has rejected the appeal on the grounds of being barred by limitation. The counsel for the Revenue submitted that he has no objection if the matter is remanded to the Assessing Authority for deciding the case afresh. The court observed that the order is bad in law because there is violation of principles of natural justice as no sufficient time was afforded and order passed ex parte in nature, does not assign any sufficient reasons, as to how the officer determined the amount due and payable by the assessee.
Held that:- The Hon’ble High Court set aside the impugned order dated 13.02.2021, the order dated 07.03.2020 passed under section 74 of the Act, 2017 and summary of order dated 07.03.2020.Further directed for de-freezing/de-attaching of the bank account(s), if attached in reference to the proceedings. The Assessing Authority shall decide the case on merits after complying with the principles of natural justice.