Facts of the Case

Meeraas Trading, through its proprietor Syed Mohd. Amir, challenged an order dated 10.05.2022 passed under Section 74 of the GST Act along with a subsequent order dated 08.08.2025 by which its appeal was dismissed as time-barred. The petitioner's grievance was that no genuine opportunity of personal hearing had been afforded before the Section 74 order was passed. The State's Standing Counsel, on instructions, confirmed that the column meant for the date of personal hearing in the show-cause notice had simply been marked 'NA'.

Issues Involved

  1. Whether an assessment order under Section 74 can stand when the show-cause notice records 'NA' against the date of personal hearing.
  2. Whether the appellate authority was justified in dismissing the appeal as time-barred without addressing this underlying defect.

Petitioner's Arguments

  • No opportunity of personal hearing was ever granted before the adverse order under Section 74 was passed, in direct violation of Section 75(4) of the GST Act.
  • The issue stood squarely covered by the Division Bench ruling in Mahaveer Trading Company v. Deputy Commissioner, State Tax, Writ Tax No. 303 of 2024, decided 04.03.2024, which condemned similar defective notices.
  • The order and the time-barred rejection of the appeal both deserved to be quashed and the matter remanded for a fresh hearing.

Respondent's Arguments

  • The Standing Counsel, on instructions, candidly admitted that the show-cause notice recorded 'NA' in the column meant for the date of personal hearing, rather than a fixed date and time.

Court Order / Findings

  • Applying the ratio in Mahaveer Trading Company on the identical defect, the Court held that marking 'NA' against the personal hearing column effectively denied the assessee any real opportunity to be heard.
  • The Court quashed both the original order dated 10.05.2022 passed under Section 74 and the subsequent appellate order dated 08.08.2025 dismissing the appeal as time-barred, on the sole ground of denial of personal hearing.
  • The matter was remanded to the assessing authority to pass a fresh order after affording the petitioner a proper opportunity of hearing.
  • The writ petition was allowed.

Important Clarification

  • Simply printing 'NA' against the date/time of personal hearing in a show-cause notice, without actually offering a hearing, does not satisfy the mandatory requirement of Section 75(4) of the GST Act.
  • Such a defect vitiates the assessment order itself and cannot be cured merely by an appellate authority dismissing the appeal on limitation without examining the underlying denial of hearing.
  • Courts continue to apply the Mahaveer Trading Company ratio uniformly across similarly defective notices issued by UP GST authorities.

Sections Involved

  • Section 74, GST Act, 2017 – determination of tax not paid/short paid involving fraud or wilful misstatement.
  • Section 75(4), GST Act, 2017 – mandatory grant of personal hearing where an adverse decision is contemplated or requested.

Decision – In Favour of

The decision is in favour of the assessee, Meeraas Trading — both the original demand order and the time-barred appellate dismissal were quashed, and the matter remanded for fresh adjudication after a proper hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench (Court No. 6) – Writ Tax No. 825 of 2025 – Coram: Hon'ble Pankaj Bhatia, J. – Order dated 26.08.2025.

Link to Download the Order

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