Facts of the Case

M/S. Sai Uniform filed a writ petition before the High Court of Punjab and Haryana at Chandigarh challenging an Order-in-Original dated 01.12.2022 (Annexure P-4) primarily on the ground that it did not record reasons in support of the determination and that no opportunity of personal hearing had been afforded to the petitioner prior to its issuance. The petitioner also challenged the consequential appellate order dated 13.02.2026 (Annexure P-6) that upheld the Order-in-Original. Learned counsel for the Revenue fairly admitted before the Court that no opportunity of personal hearing had in fact been afforded to the petitioner before the Order-in-Original was passed, and that only the operative portion of the order — determining the petitioner's tax liability under the GST law — had been uploaded on the common GST portal, without the reasons underlying it.

Issues Involved

  1. Whether an Order-in-Original determining GST liability, passed without recording reasons and without affording the assessee a personal hearing, can be sustained.
  2. Whether the consequential appellate order upholding such an Order-in-Original can survive once the underlying order is found to be vitiated on natural-justice grounds.

Petitioner's Arguments

  • The Order-in-Original dated 01.12.2022 recorded no reasons and was passed without affording an opportunity of personal hearing.
  • Only the operative, non-speaking portion of the order had been uploaded on the common GST portal to fix the petitioner's tax liability, in violation of principles of natural justice.

Respondent's Arguments

  • Counsel for the Revenue fairly and candidly admitted that no personal hearing had been afforded before the Order-in-Original was passed.
  • Counsel submitted that fresh orders would be passed after affording due opportunity of hearing, and that the matter be remitted rather than kept pending before the Court.

Court Order/Findings

  • In view of the Revenue's fair concession, the order impugned was liable to be set aside solely on the ground that it did not contain reasons and that opportunity of hearing was not afforded prior to its issuance.
  • An Order-in-Original determining GST tax liability that records no reasons and is passed without affording the assessee a personal hearing cannot be sustained.
  • The Order-in-Original dated 01.12.2022 and the appellate order dated 13.02.2026 were both set aside.
  • The respondents were directed to afford an opportunity of personal hearing to the petitioner and proceed afresh in accordance with law.
  • No coercive action was to be taken in the matter henceforth, and any recovery already made was directed to abide by the fresh reasoned order to be passed.

Important Clarification

An Order-in-Original determining GST liability that is uploaded on the common GST portal only in its operative portion, without recorded reasons and without a personal hearing having been afforded, is liable to be set aside on natural-justice grounds alone, leaving the substantive tax question open for fresh adjudication after proper hearing.

Sections Involved

  • Section 75(4), Central Goods and Services Tax Act, 2017 — mandates a personal hearing where an adverse order is proposed or upon request of the assessee.
  • Article 226, Constitution of India — the writ jurisdiction invoked to challenge the order for breach of natural justice.

Decision – In Favour of

The decision favours the Assessee. The writ petition was allowed, both the Order-in-Original and the appellate order were set aside for want of reasons and denial of personal hearing, and the matter was remanded for fresh adjudication after a proper hearing; the tax question on merits remains open.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Punjab and Haryana
  • Case No.: CWP-21493-2026 (O&M)
  • CNR: Not available
  • Coram: Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor
  • Decision Date: 17.07.2026
  • Disposal Nature: Allowed; remanded for personal hearing

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