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

TRT-2025-115

M/S SWASTIK TRADERS THRU. PARTNER MR. ANKUR AGARWAL VERSUS STATE OF U.P. THRU. PRIN. SECY. INSTITUTIONAL FINANCE & ORS

Allahabad High Court

Date:-22-07-19

In:-GST

Issue Favourable to Tax Payer ?:- yes

Held - The adherence to principles of natural justice as recognized by all civilized States is of supreme importance when a quasi-judicial body embarks on determining disputes between the parties, or any administrative action involving civil consequences is in issue. These principles are well settled. The first and foremost principle is what is commonly known as audi alteram partem rule. It says that no one should be condemned unheard. Notice is the first limb of this principle. It must be precise and unambiguous. It should apprise the party determinatively of the case he has to meet. Time given for the purpose should be adequate so as to enable him to make his representation. In the absence of a notice of the kind and such reasonable opportunity, the order passed becomes wholly vitiated. Thus, it is but essential that a party should be put on notice of the case before any adverse order is passed against him. This is one of the most important principles of natural justice. It is after all an approved rule of fair play.

Principles of natural justice control all actions of public authorities by applying rules relating to reasonableness, good faith and justice, equity and good conscience. Natural justice is a part of law which relates to administration of justice. The golden rule which stands firmly established is that the doctrine of natural justice is not only to secure justice but to prevent miscarriage of justice.


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