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Champions Steel Industries Private Limited Vs Union of India (Bombay High Court)
The case Champions Steel Industries Pvt. Ltd. vs. Union of India involved the challenge to a show cause notice and an Order-in-Original (O-I-O) issued by the Directorate General of GST Intelligence. The petitioner argued that the notice was sent to an incorrect address and not served properly, violating principles of natural justice. The petitioner’s registered address, A/3, Ahmedabad Street, Carnac Bunder, Mumbai – 400 009, was documented correctly in initial communications but later notices, including the O-I-O, were sent to a different address in Pydhonie, Mumbai, which had incorrect details, including the wrong pin code.
The Bombay High Court observed that the respondents failed to prove service of notice at the petitioner’s correct address. The court emphasized that merely because the notices sent to the wrong address were not returned as undelivered, it could not be assumed that they were served correctly. Consequently, the court quashed the O-I-O dated February 27, 2021, and remanded the matter for re-adjudication. The respondents were directed to serve future correspondence to the petitioner’s correct address and registered email.
This judgment reinforces the necessity of ensuring proper service of legal notices to uphold natural justice and avoid procedural irregularities in tax adjudications.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Rule is made returnable immediately at the request and with the consent of the learned counsel for the parties.
2. By this petition, under Article 226 of the Constitution of India, the petitioner challenges the show cause notice dated 23 December 2020 culminating into Order-in-Original (O-I-O) dated 27 February 2021 primarily on the ground of principles of natural justice.
3. Mr. Nambodiri, learned counsel for the petitioner submits that the show cause notices and O-I-O have been served on an address which does not belong to the petitioner and, therefore on this ground itself, the O-I-O passed on the basis of such notice which was not served is bad in law.
4.Mr. Mishra, learned counsel for the respondents, submits that they have issued the notices at the address mentioned in the show cause notice and O-I-O and same were not returned and, therefore, it should be presumed that the notice has been served on the petitioner and, therefore, there is no violation of principles of natural justice.
5. We have heard the learned counsel for the petitioner and the respondents and have perused the documents brought to our notice during the course of hearing.
6. The address of the petitioner as recorded by the Directorate General of GST Intelligence in the notice of July 2020 is as under :-
“M/s. Champion Streel Industries (P) Ltd.
A/3, Ahmedabad Street, Carnac Bunder,
Mumbai – 400 009.”
This is also the correct address as per the petitioner.
7. In the correspondence by the petitioner in response to 15 July 2020 show cause notice, the correct address mentioned is “A/3, Ahmedabad Street, Carnac Bunder, Mumbai, Maharashtra – 400 009.”
8. Personal hearing notice dated 23 February 2021 is addressed at the following address :-
“M/S. CHAMPION STREEL INDUSTRIES PRIVATE LIMITED
RAWALIYA BUILDING 157/159, 3RD FLOOR, R. NO.28/29
IBRAHIM REHMATULLAH ROAD,
GHOGHARI MOHALLA PYDHONIE,
MUMBAI – 400 003.”
9. The above address records a wrong pin code number and wrong road and area. We fail to understand how this notice can be said to have been served on the petitioner whose office is at the address of “A/3, Ahmedabad Street, Carnac Bunder, Mumbai – 400 009” and not at Pydhonie. The respondents have not shown any document to indicate that the Pydhonie address is that of the petitioner.
10. The O-I-O passed on 27 February 2021 is sent to the address at “A/3, Ahmedabad Street, Carnac Bunder, Mumbai, Maharashtra – 400 003.” In the said address also wrong pin code is mentioned.
11. The respondents have not explained as to how they came across the Pydhonie address to which personal hearing notice was served. Merely because the Pydhonie notice and O-I-O did not return back does not mean that it has been served on the petitioner at its correct address.
12. Therefore, in our view, in the interest of justice and the respondents having failed to show the proof of service of notice at the correct address of the petitioner, the impugned O-I-O dated 27 February 2021 is quashed and set aside and the matter is remanded back to the file of respondent no.4 for adjudication of the show cause notice. We further direct the respondents to serve further notices and correspondence to the petitioner on the address at “M/s. Champion Steel Industries (P) Ltd., A/3, Ahmedabad Street, Carnac Bunder, Mumbai – 400 009” and at the email address registered with the respondents.
13. Rule is made absolute in the above terms.
14. Petition is disposed of with no order as to costs.
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