The High Court of Jammu & Kashmir and Ladakh has directed that vendors accused of GST-related irregularities cannot be blacklisted or barred from future contracts without following due process and providing an opportunity of hearing.
A Division Bench hearing an intra-Court appeal against an interim order in a writ petition filed by vendors associated with Poshan Project, Anantnag, noted that the appellants had challenged a communication directing recovery of GST dues and blacklisting of vendors who failed to furnish GST vouchers/bills.
The respondents informed the Court that no formal blacklisting order had been issued and assured that no such action would be taken without granting the petitioners an opportunity of hearing.
Passing interim directions, the Bench ordered, “The petitioners shall not be blacklisted or restrained from participating in future contracts unless a formal order of blacklisting is passed after affording them an opportunity of being heard.”
The appeal was accordingly disposed of, with the Court directing that the rights of the appellants be protected pending adjudication of the main writ petition.
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