Order Date – 26 October 2023

Parties: M/s M Group Vs Assistant Commissioner, Sales Tax

Facts –

• The Appellant, M/s M Group, engaged in the supply of manpower services for installation of fiber optics etc. On 17.07.2021, they received a notice in Form ASMT-10 under section 61 of the Act for financial year 2018-19 to provide reasons for discrepancy in the input tax credit.
• Though they provided reply to the notice, on 03.12.2021, a show-cause notice under Section 73 of the Act for DRC-01 was issued to the petitioner inter alia stating that the petitioner had claimed excess input tax credit. An assessment order was thereafter passed on 06.04.2022.
• It was contended by the petitioner that since one of the partners was engaged in pursuing his remedy for securing anticipatory bail, the petitioner could not respond to the notice.

Issue –

• Whether the order is passed without an opportunity of hearing?

Order –

• The Divisional Bench of Hon'ble High Court observed that even if there was a violation of principles of natural justice inasmuch as an adverse order which was contemplated was passed without giving an opportunity of hearing, the petitioner in fact though had a remedy of filing an appeal has chosen not to do so.
• Thus, it will be open for the petitioner to file an appeal with an application for condonation of delay in filing such appeal explaining the circumstances which are available to suggest to the appellate authority that the petitioner was prevented by way of a sufficient cause in filing such an appeal.
• It was observed in light of the recommendations of the 52nd GST council which so as to facilitate measures of trade has opined that the time period for filing appeals under Section 107 will be allowed in case such appeals are filed against orders which have been passed on or before 31.03.2023 up to 31.01.2024.
• The Writ petition disposed of.