Dual Role of Officer as Authorising and Appellate Authority Leads to Bias, Case Remanded for Fresh Hearing
In a significant ruling, the Rajasthan High Court (Jaipur Bench) quashed an appellate order under the Rajasthan Goods and Services Tax Act, 2017, citing a violation of the principle of natural justice. The case involved M/s Ramjilal Mohanlal, a firm from New Grain Mandi, who contested an appellate order passed by the Commercial Taxes Department, Bharatpur.
The bench, comprising Dr. Pushpendra Singh Bhati and Sangeeta Sharma, JJ., found that the same officer, Shri Shiv Dayal Meena, acted as both the authorising authority for inspection and search and later as the appellate authority. This dual role was deemed to offend the principle of natural justice, particularly the doctrine of "nemo judex in causa sua," which posits that no person should judge their own case.
The court noted that the search and survey actions initiated on 06.01.2021 were authorised by Shri Meena under Section 67 of the Rajasthan Goods and Services Tax Act, 2017. Following these actions, a show cause notice was issued, leading to an adverse order against the petitioner on 05.06.2023. The petitioner appealed this decision, but the same officer dismissed the appeal on 11.12.2023, acting in his capacity as the appellate authority under Section 107 of the Act.
The petitioner's counsel argued that this dual exercise of power resulted in inherent bias and a lack of institutional impartiality, fundamentally violating natural justice principles. The High Court agreed, highlighting the lack of dispute from the respondents regarding the officer's dual role.
Consequently, the court quashed the appellate order dated 11.12.2023 and remanded the matter for a fresh decision by a different competent appellate authority. The court emphasized that the new hearing should be conducted strictly in accordance with the law, without prejudice from the previous proceedings.
This decision underscores the judiciary's commitment to upholding natural justice and impartiality, particularly in tax administration matters, where procedural fairness is paramount.
Bottom Line:
Rajasthan Goods and Services Tax Act, 2017 - Principle of natural justice violated due to dual role of the same officer as authorising authority for inspection and search and later as appellate authority - Appellate order quashed on grounds of inherent bias and lack of institutional impartiality.
Statutory provision(s): Rajasthan Goods and Services Tax Act, 2017 - Sections 67, 107
