Facts of the Case

M/s Asphaultine India and another petitioner challenged an order dated 30.09.2023 issued by Bharat Petroleum Corporation Limited (BPCL), directing them to deposit Rs.8,16,709.10 plus applicable GST within 10 days, failing which the amount would be adjusted/deducted from payments otherwise due to them, or recovered by revoking their bank guarantees. The petitioners contended that no show cause notice or hearing had been given before this order was passed.

Issues Involved

  1. Whether BPCL's demand order, issued without a prior show cause notice or hearing, was liable to be set aside on natural justice grounds.
  2. Whether the petition should be disposed of on BPCL's assurance of a future hearing rather than by the Court deciding the merits.

Petitioner's Arguments

  • The impugned order should be quashed since it was passed without any show cause notice or opportunity of hearing to set forth their defence.

Respondent's Arguments

  • The order dated 30.09.2023 was not conclusive in nature; before any final decision, the petitioners would be given a hearing on a date to be communicated, and could also submit a written response within four days.

Court Order / Findings

  • On BPCL's statement that a hearing would be afforded before any final order and that the petitioners could respond within four days, the Court disposed of the petition in those terms, without independently ruling on whether the original demand order violated natural justice.

Important Clarification

The demanded sum includes a GST component, but the dispute is fundamentally a natural-justice/commercial-contract issue with a public sector undertaking, not a determination under GST law. The Court's disposal simply preserves the petitioners' right to a hearing before any final recovery action; the underlying demand of Rs.8,16,709.10 plus GST remains to be decided by BPCL.

Sections Involved

  • No specific GST statutory provision was adjudicated; the order proceeds on principles of natural justice applicable to administrative/commercial action by a public sector undertaking.

Decision – In Favour of

Disposed of by consent/assurance rather than a decision on merits – effectively favourable to the petitioners to the extent a hearing was assured before any final recovery.

Case Details

Court: High Court of Punjab and Haryana at Chandigarh
Case Number: CWP-22625-2023 (O&M)
Coram: Justice Arun Palli and Justice Harkesh Manuja
Date of Order: 7 October 2023

Link to Download the Order

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