Whether demand Order can be issued without granting an opportunity of being heard ?
Relevant GST law

TRT-2025-850

M/S. CHANDNI CRAFTS VERSUS UNION OF INDIA, THE ASSISTANT COMMISSIONER, CENTRAL GOODS AND SERVICE TAX, DIVISION-A, JODHPUR

Rajasthan High Court

Date:-17-01-23

In:-GST

Issue Favourable to Tax Payer ?:- yes

Held - The authority conclusively found that the natural justice had not been followed by the adjudicating authority, however, on the basis that natural justice was duly followed during appeal proceedings, did not interfere with the order on account of the said aspect of violation of principle of natural justice.

It is well settled that a failure of natural justice in the authority of first instance cannot be cured by sufficiency of natural justice in the appellate body, else the same would encourage the tendency of the authorities to give a short shrift to the proceedings before them.

In view of the above fact situation, wherein admittedly the principles of natural justice have been violated by the adjudicating authority and the appellate authority only on account of the fact that it had provided opportunity of hearing, did not interfere with the order of the adjudicating authority, both the orders cannot be sustained.

Consequently, the writ petition filed by the petitioner is allowed.


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