High Court Quashes Ex-Parte GST Order for Violation of Natural Justice

The dispute arose from a GST assessment order that was passed without the taxpayer being properly heard. Although a hearing date had initially been fixed, the authority did not pass any order on that day. More importantly, no fresh or adjourned date of hearing was ever communicated to the taxpayer, leaving them unaware of further proceedings.

As a result, the order came to be passed ex-parte, without any participation from the petitioner. Challenging this, the petitioner approached the Allahabad High Court, arguing that the entire process was unfair and violated basic principles of natural justice.

Issue Before Cour: Whether ex-parte order is valid without informing adjourned hearing date.

HC Ruling: The Allahabad High Court set aside the assessment order, holding that fairness in procedure is a fundamental requirement in such proceedings. The Court observed that once a hearing date is fixed, the authority must either conclude the matter on that date or properly inform the taxpayer of the next date.

By failing to communicate the adjourned date, the authority effectively deprived the petitioner of an opportunity to be heard and itself caused the ex-parte nature of the order. The Court therefore quashed the order and directed the authorities to grant a fresh hearing and pass a reasoned decision in accordance with law.

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