Facts of the Case

The Petitioner challenged the adjudication order dated 28.12.2023, whereby Show Cause Notices dated 24.10.2018 and 14.02.2020 were disposed of ex-parte.

The Petitioner contended that no proper or effective opportunity of personal hearing was granted. Although the Petitioner appeared on 04.01.2021 and filed written submissions thereafter, no further communication or hearing notice was received for a significant period.

Subsequently, notices were issued with discrepancies in hearing dates. Notably, a notice dated 11.12.2023 incorrectly mentioned the hearing date as 18.11.2023 instead of 18.12.2023, leading to confusion and absence of the Petitioner during the hearing.

Despite this, the adjudicating authority passed an ex-parte order stating that the Petitioner failed to appear on 18.12.2023.

Issues Involved

  1. Whether the ex-parte adjudication order is valid when no proper notice of hearing was served.
  2. Whether clerical/typographical errors in hearing notices can deprive a party of a fair opportunity.
  3. Whether such action violates the principles of natural justice.

Petitioner’s Arguments

  • No valid or effective notice of personal hearing was served for the alleged date of 18.12.2023.
  • The notice dated 11.12.2023 incorrectly mentioned the hearing date as 18.11.2023.
  • The Petitioner was thus prevented from appearing, causing serious prejudice.
  • The ex-parte order was passed without granting a fair opportunity of hearing.

Respondent’s Arguments

  • Multiple notices of hearing were issued to the Petitioner.
  • The incorrect date in the notice was due to a clerical/typographical error.
  • A hearing was intended to be conducted on 18.12.2023. 

Court’s Findings / Order

The Court observed:

  • The record clearly showed that the notice dated 11.12.2023 mentioned the hearing date as 18.11.2023.
  • No valid notice existed fixing the hearing on 18.12.2023.
  • The Respondent admitted that the incorrect date was due to a typographical error and no office noting supported the alleged correct date.

The Court held that:

  • The Petitioner was deprived of a fair opportunity of hearing.
  • The ex-parte order was passed in violation of the principles of natural justice.

Final Order:

  • The impugned order dated 28.12.2023 was set aside.
  • The matter was remanded to the adjudicating authority for fresh adjudication.
  • The Petitioner was directed to appear before the authority on 30.04.2024.

Important Clarification

The Court expressly clarified that:

  • It has not adjudicated on the merits of the case.
  • All rights and contentions of both parties are kept open.

Sections / Legal Principles Involved

  • Principles of Natural Justice (Audi Alteram Partem)
  • Adjudication under CGST Law (procedural fairness in tax proceedings)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/SAS22042024CW38842024_170728.pdf

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