Order Date – 08 January 2024

Parties: M/s Eastern Machin Bricks And Tiles Industries Vs State of UP and Others

Facts –

• The Petitioner M/s Eastern Machine Bricks And Tiles Industries, had cancelled its registration voluntarily on September 18, 2019, whereas the notice under Section 74 of the Act was given to it only by way of uploading the same on the web portal in the year 2021 or in late December 2020 as the date fixed for hearing was January 12, 2021.
• It was further submitted that the department has not provided with the copy of Special Investigation Branch report and did not grant a second opportunity of hearing to the petitioner.

Issue –

• Whether there is violation of the principles of natural justice?

Order –

• The Single Bench of Hon’ble High Court observed that it is trite law that principles of audi alteram partem are required to be followed by the authority and giving a go by to the same results in violation of the principles of natural justice. One may examine the development of the law in relation to natural justice.
• In the present case, when the petitioner had cancelled its registration in the year 2019, a proper notice was required to be issued to it under Section 74 of the Act at its address. However, the authorities simply uploaded the Section 74 show cause notice on the web portal inspite of knowing that the petitioner had already cancelled its registration prior to the date of issuance of the show cause notice. This action clearly prevented the petitioner from appearing in the hearing in the original proceeding under Section 74 of the Act that was accordingly passed ex parte.
• Moreover, it was incumbent upon the authorities to provide the copies of materials being relied upon by them (SIB report, in this case) to the petitioner/assessee so as to enable him to deal with the same. Hence, any action that proceeds without proper intimation and service of the show cause notice to the petitioner is vitiated and bad in law, and is, accordingly quashed and set aside, the writ petition is allowed.