The Calcutta High Court bench has quashed a detention order passed by the Goods and Service Tax Department (GST) on the ground that the opportunity of hearing was not accorded to the assessee which would amount to the violation of natural justice principles.
The petitioner/assessee has challenged the order passed by the Deputy Commissioner of State Tax on the ground that the order was bad in law for the reason that the goods of the petitioners were detained without giving any opportunity of hearing to the petitioners under the relevant provision of Section 129 of the West Bengal Goods and Service Tax Act,2017 (WBGST Act). The petitioner consented to pay the tax and penalty amounts specified in Section 129 of the WBGST Act.
Justice Md. Nizamuddin ordered that the detained goods shall be released on making payment as per the amended provision of Section 129(1) of the WBGST Act and directed the petitioner to make payment within seven days from the date.
The Court further ordered that on receipt of such payment, the department shall release the detained goods in question within 72 hours from receipt of payment.
The court, while quashing the detention order passed by the Deputy Commissioner of State Tax and remanded it to the authority concerned to consider afresh and pass a reasoned and speaking order in accordance with the law after giving an opportunity of hearing to the petitioners or their authorised representative.
“It is expected that the proceedings and fresh orders will be passed by the authorities concerned as expeditiously as possible,” the court said.
Precious Trade Link Private Limited & Anr. vs Assistant Commissioner of State Tax under Bureau of Investigation
CITATION: 2022 TAXSCAN (HC) 217
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