Facts of the Case

Sahara Steels, through its proprietor Ahmad Kaiser Raza Siddiqui, challenged an order dated 26.12.2023 passed under Section 74 of the Goods and Services Tax Act by the State Tax authority, as well as a subsequent appellate order dated 19.09.2025 dismissing its appeal as beyond limitation. The petitioner's central grievance was that no genuine opportunity of personal hearing had been granted before the Section 74 order was passed. Counsel for the State admitted, on instructions, that the show cause notice had marked 'NA' against the column for date of personal hearing.

Issues Involved

  1. Whether marking 'NA' against the personal hearing date in a Section 74 show cause notice amounts to denial of the opportunity of hearing mandated under Section 75(4).
  2. Whether such a defect vitiates both the original order and the subsequent time-barred appellate dismissal.
  3. What relief follows once the issue is found covered by the Court's own precedent.

Petitioner's Arguments

  • Contended that no opportunity of hearing was granted while passing the order under Section 74, contrary to Section 75(4) of the GST Act.
  • Relied on the binding co-ordinate Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Another (Writ Tax No.303 of 2024), which dealt with an identical defect.

Respondent's Arguments

  • The Standing Counsel, on instructions, confirmed that 'NA' had indeed been mentioned against the date of personal hearing in the show cause notice, effectively conceding the factual basis of the petitioner's grievance.

Court Order / Findings

  • The Court found the issue squarely covered by its earlier ruling in Mahaveer Trading Company, where an identical 'NA' marking against the personal hearing column was held to vitiate the assessment.
  • Held that, on this sole ground, the petition deserved to be allowed, and quashed both the Section 74 order dated 26.12.2023 and the appellate order dated 19.09.2025.
  • Remanded the matter to the assessing authority to pass a fresh order after granting an opportunity of hearing to the petitioner.

Important Clarification

  • Marking 'NA' against the personal hearing date field in a GST show cause notice, rather than actually fixing and communicating a hearing date, is treated by the Allahabad High Court as a denial of the mandatory opportunity of hearing under Section 75(4), warranting quashing of the resultant order.
  • This defect is independently fatal, regardless of whether the subsequent appeal itself was filed within limitation, since the underlying order is void for want of natural justice.

Sections Involved

  • Section 74, CGST/UPGST Act, 2017 – governs demand and recovery for tax evaded by fraud, wilful misstatement or suppression of facts.
  • Section 75(4), CGST Act, 2017 – mandates an opportunity of personal hearing before passing an adverse order.

Decision – In Favour of

Allowed in favour of the assessee, with both the Section 74 order and the appellate dismissal quashed, and the matter remanded for a fresh order after a proper hearing.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1011 of 2025
  • Coram: Hon'ble Mr. Justice Pankaj Bhatia
  • Date of Order: 24 September 2025

Link to Download the Order

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