Calcutta High Court holds non-speaking order invalid under the WBGST Act

Calcutta High Court holds non-speaking order invalid under the WBGST Act

Views that the notice was not served properly and violated the principles of natural justice

In a significant ruling, the Calcutta High Court (HC) has set aside the Goods and Services Tax (GST) order under the West Bengal Goods and Service Tax (WBGST) Act and held that the non-speaking order was not valid.

The petitioner, Maxxcab Wires & Cables Pvt. Ltd. & Anr, had challenged the October 2022 notice and the subsequent November order on the ground that it was a non-speaking order.

The petitioner apprised that while the impugned notice was issued on 27 October, he was asked to appear before the Adjudicating Authority (AA) on 3 October, the date which had expired. He requested that the vehicle and the goods be released, as his vehicle broke down and the period to appear before the concerned authorities was less than 24 hours.

The court viewed that the notice had not been served properly. Clearly, there was a violation of the principles of natural justice.

Thus, Justice Nizamuddin set aside the impugned 4 November order and remanded the matter back to the AA. It ordered the AA to pass a fresh speaking order after giving an opportunity for a hearing as well as allowing the petitioner to make fresh representation against the 27 October show-cause notice.

While disposing of the petition, the court held, "The respondents shall consider the prayer for the release of the goods and the vehicle of the petitioner in accordance with the law."