Facts of the Case

M/S Descon Green Tech Pvt. Ltd., through its authorised representative Atul Kumar Dubey, challenged an order dated 18.07.2024 passed under Section 73 of the GST Act, along with the subsequent appellate order dated 17.06.2025 dismissing its appeal as time-barred. The petitioner's grievance was that it had not been accorded a proper opportunity of hearing before the Section 73 order was passed. The Standing Counsel, on instructions, confirmed that in the show-cause notice the date fixed for personal hearing was, in fact, earlier than the date fixed for filing the reply.

Issues Involved

  1. Whether a Section 73 demand order can survive when the show-cause notice fixed the personal hearing date before the last date for filing a reply, thereby making a meaningful hearing impossible.

Petitioner's Arguments

  • No real opportunity of hearing was accorded, as the personal hearing date preceded the deadline for filing the reply, defeating the very purpose of the hearing.
  • The issue was squarely covered by the ruling in Mahaveer Trading Company v. Deputy Commissioner, State Tax, Writ Tax No. 303 of 2024, decided 04.03.2024.

Respondent's Arguments

  • The Standing Counsel, on instructions, admitted that in the show-cause notice the date fixed for personal hearing was earlier than the date fixed for filing the reply to the notice.

Court Order / Findings

  • Following the ratio in Mahaveer Trading Company, the Court held that fixing the hearing date ahead of the reply deadline renders the hearing an empty formality and vitiates the resultant order.
  • The Court quashed both the order dated 18.07.2024 passed under Section 73 and the appellate order dated 17.06.2025 dismissing the appeal as time-barred, on the sole ground of a defective hearing sequence.
  • The matter was remanded to the assessing authority to pass a fresh order after affording a proper opportunity of hearing.
  • The writ petition was allowed.

Important Clarification

  • A show-cause notice that schedules the personal hearing before the deadline for filing a written reply defeats the purpose of the hearing and is treated as no hearing at all.
  • Such a sequencing defect independently vitiates the assessment order, regardless of whether the assessee ultimately appeared on the fixed date.

Sections Involved

  • Section 73, GST Act, 2017 – determination of tax not paid/short paid, no fraud alleged.
  • Section 75(4), GST Act, 2017 – mandatory opportunity of personal hearing.

Decision – In Favour of

The decision is in favour of the assessee, M/S Descon Green Tech Pvt. Ltd. — both the demand order and the time-barred appellate dismissal were quashed and the matter remanded for a fresh hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench (Court No. 6) – Writ Tax No. 755 of 2025 – Neutral Citation: 2025:AHC-LKO:46368 – Coram: Hon'ble Pankaj Bhatia, J. – Order dated 08.08.2025.

Link to Download the Order

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