Case Note & Summary
The petitioner, SFC Global Commodity Private Limited, filed a Special Civil Application under Article 226 of the Constitution before the Gujarat High Court challenging the order dated 24.09.2025 passed by the Deputy Commissioner of Sales Tax (Respondent No.4) and the subsequent appellate order dismissing the appeal. The petitioner had challenged the original order on grounds of violation of principles of natural justice, specifically that no opportunity of personal hearing was granted despite requests, and that the order was passed in breach of Section 75(4) of the Central Goods and Services Tax Act, 2017. The petitioner also contended that the generation of RFT-01 was belated due to an administrative lapse and system auto-generation, which should not prejudice the assessee. The Appellate Authority, however, dismissed the appeal by merely observing that the appellant was afforded an opportunity to remain personally present but did not appear, without considering the substantive grounds raised. The High Court noted that both the petitioner and the respondent had committed irregularities before the Appellate Authority. The court found that the Appellate Authority had ignored all contentions raised by the petitioner and failed to apply its mind to the grounds of appeal. Consequently, the High Court set aside the appellate order and remanded the matter to the Appellate Authority for fresh adjudication, directing that a reasonable opportunity of hearing be afforded to the petitioner. The court also clarified that it had not expressed any opinion on the merits of the case and that the petitioner was at liberty to raise all contentions before the Appellate Authority.
Headnote
A) Constitutional Law - Principles of Natural Justice - Right to Personal Hearing - Section 75(4) of the Central Goods and Services Tax Act, 2017 - The petitioner challenged the order of the Appellate Authority which dismissed the appeal without considering the grounds raised, including violation of natural justice and denial of personal hearing. The High Court held that the Appellate Authority failed to apply its mind to the contentions and merely observed that the appellant did not remain present, which is insufficient. The matter was remanded for fresh adjudication after affording a reasonable opportunity of hearing. (Paras 3-4) B) Goods and Services Tax - Appellate Authority - Duty to Consider Grounds - The Appellate Authority is required to consider each ground raised in the appeal and pass a reasoned order. In this case, the authority ignored specific contentions regarding breach of Section 75(4) and administrative lapse in generation of RFT-01. The High Court set aside the order and remanded the matter for fresh consideration. (Paras 3-4)
Issue of Consideration
Whether the Appellate Authority's order rejecting the appeal without considering the grounds raised and without granting a proper opportunity of hearing is sustainable in law.
Final Decision
The High Court set aside the appellate order and remanded the matter to the Appellate Authority for fresh adjudication, directing that a reasonable opportunity of hearing be afforded to the petitioner. The court clarified that it had not expressed any opinion on the merits and that the petitioner was at liberty to raise all contentions.
Law Points
- Principles of natural justice
- Section 75(4) of Central Goods and Services Tax Act
- 2017
- Appellate Authority's duty to consider grounds of appeal
- Right to personal hearing
