Order Date – 20 October 2023

Parties: Star Health and Allied Insurance Company Ltd. Vs The Commissioner of ST, Deputy Commissioner (ST) –II and The Joint Commissioner (GST Appeals)

Facts –

• The Petitioner, Star Health and Allied Insurance Company Ltd., received a notice dated 22.12.2022, pointing out certain discrepancies, to which, a reply was submitted on dated 09.01.2023. The second respondent without considering the said reply, issued the impugned show cause notice dated 21.04.2023.
• The petitioner filed reply for the same and personal hearing was fixed on 20.06.2023 by a notice dated 16.06.2023. Since the said notice dated 16.06.2023 does not speak of anything about the reply filed by the petitioner, reiterated the said reply on 16.06.2023.
• Thereafter, the second respondent issued another personal hearing notice on 21.06.2023 and fixed the hearing on 23.06.2023 at 11.00 p.m. The petitioner requested to provide time for furnishing the documents. However, the second respondent rejected the petitioner's request on the ground that three hearing opportunities have been granted and confirmed the proposals contained in the show cause notice dated 21.04.2023.

Issue –

• Whether the petitioner is granted reasonable opportunity of hearing?

Order –

• The Single Bench of Hon’ble High Court observed the respondent-Department has provided three opportunities to the petitioner, but, as rightly pointed out by the learned counsel for the petitioner, all those three opportunities, at no stretch of imagination can be deemed to be fair opportunities granted to the petitioner, inasmuch as, in all the said three notices dated 21.04.2023, ii) 16.06.2023, and iii) 21.06.2023, the second respondent has not afforded sufficient time enabling the petitioner to file effective reply to defend themselves.
• Thus, it is clear that by means of the last so-called III Opportunity of hearing, the petitioner was granted only a short span of time, i.e. less than 2 days, and which is less than 36 hours, and at any costs, it does not merit on the aspect of providing due opportunity. As per the provisions of the Act, sufficient time ought to have been granted for filing their reply, unless and until, sufficient time is granted to the petitioner, they will not be in position to file their reply in an effective manner.
• The assessment order is set aside and the matter is remanded to the second respondent for fresh consideration.