Ex-parte Order Set Aside Due to Non-Consideration of Medical Adjournment Request.

Ex-parte Order Set Aside Due to Non-Consideration of Medical Adjournment Request.

Issue:

Whether a demand order passed by the GST department should be set aside if it was issued without considering a legitimate request for adjournment based on the proprietor’s serious medical condition (brain stroke), even when supported by medical documents.

Facts:

The assessee challenged a demand order and associated show-cause notices issued by the respondent department. The core grievance was that the department proceeded to pass the impugned order despite a specific reply from the assessee stating that its proprietor had suffered a brain stroke and was consequently unable to attend a hearing or represent the case. The assessee submitted that it had sought an adjournment, providing accompanying medical documents from Indraprastha Apollo Hospital to substantiate the proprietor’s medical condition. However, instead of granting the adjournment or considering the request empathetically, the respondent department passed the impugned order.

Decision:

In favor of the assessee: The court held that the medical ground stated by the assessee ought to have been considered empathetically, especially as it was accompanied by all necessary documents from a reputable hospital (Indraprastha Apollo Hospital). Accordingly, the respondent department should have considered the assessee’s request for adjournment and not proceeded to pass the impugned order. Therefore, the impugned order was set aside.

Key Takeaways:

• Principle of Natural Justice (Right to Fair Hearing): A fundamental principle of natural justice is that a party must be given a reasonable opportunity to be heard. Denying an adjournment request based on a serious medical condition, especially when supported by evidence, violates this principle.
• Empathetic Consideration of Medical Grounds: Tax authorities are expected to show empathy and due consideration to genuine medical emergencies that prevent a party from attending hearings or submitting responses.
• Consequence of Procedural Impropriety: Orders passed without affording a fair opportunity of hearing, particularly when a valid reason for adjournment is provided, are susceptible to being set aside by higher judicial authorities.
• Importance of Supporting Documents: Assessees should always support adjournment requests based on medical grounds with proper medical certificates and reports to ensure their legitimacy.