Facts of the Case

The Petitioner, Sumit Kariwala, challenged two orders of the State GST appellate authority — one dated 17th September, 2021 in Appeal Case No. A-90/GST/KSC/BH/20-21 (subject matter of W.P.A. 90 of 2022) and another connected order in Appeal Case No. A-91/GST/KSC/BH/20-21 (subject matter of WPA 93 of 2022). The Petitioner's grievance was that no notice of hearing was issued at his correct registered e-mail address before the appellate authority passed the final orders, denying him an effective opportunity of hearing. Since both writ petitions involved similar facts and an identical question of law, they were heard and disposed of together by a common order.

Issues Involved

  1. Whether the impugned GST appellate orders were vitiated for violation of the principles of natural justice on account of hearing notices not being sent to the Petitioner's correct registered e-mail address.
  2. Whether, in such circumstances, the appeals ought to be remanded for fresh consideration rather than decided on affidavits.

Petitioner's Arguments

  • No notice of hearing was issued at the Petitioner's correct registered e-mail address before the impugned final orders were passed.
  • This failure amounted to a clear violation of the principles of natural justice, depriving the Petitioner of an opportunity to be heard before the appellate authority.

Respondent's Arguments

  • Counsel for the State respondents, on instructions, very fairly admitted the mistake of violation of principles of natural justice on the part of the authorities concerned.
  • The factual position regarding the wrong e-mail address was not contradicted.

Court Order / Findings

  • The Court held that calling for affidavits would be a futile exercise since the record itself established the lapse and could not be improved upon by affidavits.
  • Both impugned appellate orders were set aside solely on the ground of violation of principles of natural justice for not affording effective and proper opportunity of hearing.
  • The matters were remanded to the appellate authority to consider the appeals afresh and pass orders in accordance with law, after giving an opportunity of hearing to the Petitioner or his authorised representatives, within eight weeks from communication of the order.
  • The Court expressly clarified that it had not gone into the merits of the appeals.

Important Clarification

  • Sending a hearing notice to an incorrect e-mail address, rather than the assessee's registered e-mail on the GST portal, amounts to a breach of natural justice that can vitiate an appellate order regardless of its substantive merits.
  • Where a natural justice defect is admitted or apparent from the record, courts will remand rather than call for affidavits or examine the underlying merits themselves.

Sections Involved

  • Section 107, State Goods and Services Tax Act, 2017 — governs appeals to the appellate authority against orders passed by the proper officer, including the requirement of a fair opportunity of hearing before disposal.
  • Principles of natural justice under Article 226 of the Constitution — applied to set aside orders passed without effective notice.

Decision – In Favour of

Disposed of with directions, in favour of the Assessee — both appellate orders were set aside purely on natural justice grounds and remanded for a fresh hearing within eight weeks, with no opinion expressed on the merits of either appeal.

Case Details

  • Court: High Court at Calcutta
  • Case No.: W.P.A. 90 of 2022 with WPA 93 of 2022
  • Coram: Justice Md. Nizamuddin
  • Date of Order: 21.02.2022
  • Parties: Sumit Kariwala vs The Deputy Commissioner of State Tax & Ors.

Link to Download the Order

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