Facts of the Case

M/s Krishna Kirana and General Store, through its proprietor, challenged an order dated 08.04.2023 passed under Section 73 of the GST Act and the subsequent order dated 29.03.2025 dismissing its appeal as beyond limitation, before the Allahabad High Court, Lucknow Bench. The petitioner's counsel submitted that no real opportunity of hearing was granted before the order was passed. The State's counsel, on instructions, confirmed that the show cause notice had simply marked 'NA' in the field meant for the personal hearing date.

Issues Involved

  1. Whether marking the personal-hearing field of a show cause notice as 'NA' amounts to denial of a fair hearing under Section 73.
  2. Whether such a defect justifies quashing both the assessment order and the appellate dismissal on limitation.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the Section 73 order, since the notice did not fix any hearing date at all, marking it 'NA'.
  • The issue was squarely covered by this Court's decision in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr. (Writ Tax No. 303 of 2024, decided 04.03.2024), warranting the same relief.

Respondent's Arguments

  • The State's Standing Counsel, on instructions, confirmed that the show cause notice had indeed marked 'NA' for personal hearing.

Court Order / Findings

  • The Court held that the 'NA' entry for personal hearing was, on the sole ground raised, sufficient to vitiate the proceedings, following the binding precedent of Mahaveer Trading Company.
  • The orders dated 08.04.2023 and 29.03.2025 were quashed, and the matter was remanded to the assessing authority to pass a fresh order after granting an opportunity of hearing to the petitioner.

Important Clarification

  • A show cause notice that leaves the personal-hearing field blank or marked 'NA', rather than fixing an actual date, fails to satisfy the mandatory hearing requirement under Section 75(4) of the GST Act.
  • This defect, once demonstrated, is treated by the Allahabad High Court as sufficient by itself to set aside the resulting order, even where the appeal was dismissed on limitation.

Sections Involved

  • Section 73, CGST/UPGST Act, 2017 – governs the notice-reply-hearing procedure for non-fraud tax demands.
  • Section 75(4), CGST Act, 2017 – mandates a personal hearing where requested or where an adverse decision is contemplated.

Decision – In Favour of

The writ petition was allowed in favour of the assessee, both impugned orders were quashed, and the matter remanded for fresh adjudication after a proper hearing.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench. Case No.: Writ Tax No. 822 of 2025. Coram: Hon'ble Mr. Justice Pankaj Bhatia. Date of Order: 25th August, 2025.

Link to Download the Order

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