Calcutta High Court Sets Aside GST Adjudication Order for Breach of Natural Justice

Background of the Dispute

The matter in Arup Dutta Vs State of West Bengal & Ors. (Calcutta High Court) arose from a challenge to an adjudication order dated 09.12.2025 passed by respondent No. 3 under Section 73 of the West Bengal Goods and Services Tax Act (WBGST Act) and the Central Goods and Services Tax Act, 2017 (CGST Act).

The assessee approached the Calcutta High Court under writ jurisdiction, assailing the order primarily on the grounds that:

  • the adjudication was carried out ex parte,
  • no effective opportunity of personal hearing was granted, and
  • the order was uploaded on the GST portal only under a specific tab without independent intimation, allegedly causing the assessee to remain unaware of its issuance within time.

The Court was called upon to examine whether the adjudication process complied with statutory requirements and the principles of natural justice, particularly in light of Section 75(4) of the GST Act.

Key Facts and Procedural History

Issue of Show Cause Notice

  1. A show cause notice in Form DRC 01 dated 04.06.2025 was issued to the assessee proposing demand of:

    • tax,
    • interest, and
    • penalty.

  2. According to the assessee, both:

    • the show cause notice, and
    • the subsequent adjudication order,
      were made available on the GST portal only under the tab titled “Additional Notice and Orders”.

  3. The assessee contended that the show cause notice itself fixed a date for personal hearing which fell before the last date for filing a reply, which was argued to be inconsistent with the basic tenets of natural justice.

Filing of Reply and Alleged Denial of Hearing

  1. The assessee’s counsel stated that a reply dated 04.01.2025 was submitted in response to the show cause notice.

  2. Despite this reply, it was alleged that respondent No. 3:

    • did not schedule or grant any effective opportunity for personal hearing, and
    • proceeded to pass the adjudication order ex parte.

  3. This was claimed to be in direct conflict with the mandate of Section 75(4) of the GST Act, which requires that a reasonable opportunity of hearing be afforded where an adverse decision is contemplated.

Upload of Adjudication Order and Knowledge of Assessee

  1. The impugned adjudication order dated 09.12.2025 was, according to the assessee, only uploaded under the “Additional notices and order” tab on the portal.

  2. The assessee asserted that there was no separate or specific communication or alert about the passing of the order, and that he became aware of its existence only after receiving a phone call from the GST Department on 10.07.2026.

  3. It was also argued that:

    • the proceedings and orders were contrary to law,
    • there was non-compliance with the statutory procedure under the GST enactments, and
    • the process suffered from lack of application of mind.