Case Summary
Case Title: AGP Enterprise v. State of West Bengal & Anr.
Court: Calcutta High Court
Petition Number: WPA 28851 of 2024
Date of Judgement: 20.01.2025
Category of Dispute: Principles of Natural Justice (Show-Cause Notice without hearing)
Relevant Sections: Section 73 / 74 CGST Act, 2017 read with Rule 142 of CGST Rules, 2017
Facts (Para 1–3)
The petitioner, AGP Enterprise, was served a show-cause notice dated 25 July 2019 in Form GST MOV-07 under the GST Act, 2017. However, no hearing was conducted thereafter, nor was any communication made to the petitioner for over five years. The petitioner approached the High Court on grounds that such prolonged silence and lack of hearing violated principles of natural justice.
Questions for Consideration
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Whether the failure of the respondent authorities to provide a hearing after issuance of the show-cause notice rendered the proceedings legally unsustainable?
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Whether the matter should be remanded back for adjudication with due opportunity of hearing?
Observations (Para 4–7)
The Court observed that the records admitted by the State clearly showed that no hearing was given to the petitioner after issuance of the show-cause notice. This was a blatant violation of Section 75(4) of the CGST Act, 2017 which mandates reasonable opportunity of hearing before passing an adjudication order. The Court stressed that such omission undermines the entire adjudicatory process.
Judgement (Para 8–11)
The Calcutta High Court directed respondent no. 2 to complete adjudication afresh by providing the petitioner a fair opportunity of hearing within two months. The Court further directed that the order be communicated both by the petitioner and the State’s counsel to ensure compliance. The writ petition was thus disposed of with no order as to costs.
Table of Cases Referred
| Case | Court | Verdict |
|---|---|---|
| AGP Enterprise v. State of West Bengal & Anr. | Calcutta HC | Show-cause notice cannot be sustained without hearing; matter remanded for adjudication with opportunity of hearing. |
Between Fine Lines
For businesses, this judgment reinforces that mere issuance of GST show-cause notices without subsequent hearing has no legal sanctity. Taxpayers should insist on their statutory right to be heard before any adjudication order is finalized. Authorities are bound by Section 75(4) CGST Act to follow principles of natural justice.
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