Facts of the Case

The petitioner, M/s Ashra General Store, challenged an order dated 28.08.2024 passed under Section 73 of the UP GST Act, 2017, and a subsequent appellate order dated 22.04.2025 that dismissed its appeal as time-barred. The petitioner's grievance was that no opportunity of personal hearing had been granted before the Section 73 order was passed, even though it had filed written replies to the show cause notice on three separate dates. The department admitted that no specific date for personal hearing had been fixed. The petitioner relied on a binding Division Bench precedent of the same High Court, Mahaveer Trading Company vs. Deputy Commissioner, State Tax, which held that mere submission of a written reply cannot substitute for the mandatory hearing under Section 75(4).

Issues Involved

  1. Whether passing an adjudication order under Section 73 without fixing any date for personal hearing violates Section 75(4) of the GST Act.
  2. Whether such a violation vitiates both the original order and a subsequent appellate order dismissing the appeal on limitation grounds.

Petitioner's Arguments

  • No date or time for personal hearing was ever communicated despite three rounds of written replies being filed to the show cause notice.
  • The adjudicating authority proceeded straight to a merits-based order without offering the mandatory oral hearing under Section 75(4).
  • The issue was squarely covered by the Division Bench ruling in Mahaveer Trading Company, which held such orders unsustainable.
  • The appellate order compounded the illegality by dismissing the appeal purely on limitation without addressing the denial of hearing.

Respondent's Arguments

  • The Additional Chief Standing Counsel fairly conceded, on instructions, that no specific date for personal hearing had been fixed for the petitioner.
  • The State placed on record an internal Office Memorandum issued by the Commissioner, Commercial Tax, acknowledging the same procedural lapse across similar cases.

Court Order / Findings

  • The Court held that a written reply to a show cause notice can never be a substitute for the mandatory personal hearing under Section 75(4), and that authorities cannot dilute this procedural safeguard merely because the substantive law changed from the earlier tax regime.
  • Relying on the departmental Office Memorandum listing systemic defects in fixing hearing dates, the Court found the denial of hearing established on record.
  • Both the assessment order dated 28.08.2024 and the appellate order dated 22.04.2025 were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after affording a genuine opportunity of personal hearing.

Important Clarification

  • Filing of a written reply to a show cause notice, however detailed, does not dispense with the statutory requirement of personal hearing under Section 75(4) before an adverse order is passed.
  • Courts will treat departmental admissions of systemic non-compliance (such as internal circulars flagging hearing-date defects) as strong corroboration for quashing orders passed without hearing.

Sections Involved

  • Section 73, UP GST Act, 2017 - determination of tax not paid/short paid for reasons other than fraud.
  • Section 75(4), UP GST Act, 2017 - mandatory opportunity of hearing before an adverse decision.

Decision – In Favour of

Decided in favour of the assessee; both impugned orders quashed and the matter remanded for a fresh, properly heard adjudication.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1449 of 2025
  • Coram: Justice Jaspreet Singh
  • Date: 2nd December, 2025

Link to Download the Order

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