Demand order passed by authority suffers from grossest possible violation of principles of natural justice. These orders are, therefore, quashed.
Section 129 of the CGST Act — Goods in Transit –-- The petitioner challenged a demand order dated 06.11.2018 passed by the Inspector of Sales Tax. The respondent intercepted the goods in transit and found that there were discrepancies and omissions in the E-way bill. The respondent issued a notice to the petitioner and raised the tentative demand of GST and IGST tax with penalty. He called upon the petitioner to appear before him on 23.11.2018, however, on the same day he passed the separate order raising a demand of Rs. 32,280/- against the petitioner. The court observed that having issued notice calling upon the petitioner why certain demand of tax with penalty not be confirmed he passed the final order confirming the demand on the same date as the notice and long before the time he had granted the petitioner to respond to the notice.
Held that:- The Hon’ble High Court quashed the orders and directed that it would be open for the competent authority to pass a fresh order after allowing the petitioner to file reply to the show-cause notice. The petitioner shall file such reply latest by 31st May, 2021 upon which the concerned authority shall pass order in accordance with law.
Demand order passed by authority suffers from grossest possible violation of principles of natural justice. These orders are, therefore, quashed.
Section 129 of the CGST Act — Goods in Transit –-- The petitioner challenged a demand order dated 06.11.2018 passed by the Inspector of Sales Tax. The respondent intercepted the goods in transit and found that there were discrepancies and omissions in the E-way bill. The respondent issued a notice to the petitioner and raised the tentative demand of GST and IGST tax with penalty. He called upon the petitioner to appear before him on 23.11.2018, however, on the same day he passed the separate order raising a demand of Rs. 32,280/- against the petitioner. The court observed that having issued notice calling upon the petitioner why certain demand of tax with penalty not be confirmed he passed the final order confirming the demand on the same date as the notice and long before the time he had granted the petitioner to respond to the notice.
Held that:- The Hon’ble High Court quashed the orders and directed that it would be open for the competent authority to pass a fresh order after allowing the petitioner to file reply to the show-cause notice. The petitioner shall file such reply latest by 31st May, 2021 upon which the concerned authority shall pass order in accordance with law.