Facts of the Case

The petitioner, Raj Transport And Traders, challenged an order dated 04.06.2025 passed under Section 73 of the GST Act along with an appellate order dated 19.02.2025 that had disposed of its appeal ex-parte. The petitioner's grievance was that no genuine opportunity of hearing had been afforded before the main order was passed, and that the appellate authority proceeded ex-parte on account of its representative's inability to appear, without factoring in the underlying denial of hearing at the assessment stage.

Issues Involved

  1. Whether a Section 73 order is sustainable where the hearing date fixed in the notice preceded the deadline for filing a reply.
  2. Whether an appellate order passed ex-parte, without considering the assessee's core grievance of denial of hearing, can stand.

Petitioner's Arguments

  • No genuine opportunity of hearing was granted while passing the order under Section 73 of the GST Act.
  • The appellate proceedings were also conducted ex-parte, compounding the initial procedural lapse.

Respondent's Arguments

  • The Standing Counsel admitted, on instructions, that the date of hearing fixed in the notice was prior in time to the date fixed for submission of reply.
  • Before the appellate authority, the petitioner failed to appear because of the conduct of its own representative.

Court Order / Findings

  • The Court held that fixing a personal hearing date earlier than the deadline for filing a reply defeats the very purpose of the hearing and renders the resultant Section 73 order unsustainable.
  • Since the appeal was also decided ex-parte without examining this core procedural defect, both orders dated 04.06.2025 and 19.02.2025 were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order in accordance with law after granting a proper opportunity of hearing.

Important Clarification

  • A hearing date that falls before the deadline to file a reply to the show cause notice is procedurally defective and vitiates the assessment order, since the assessee is deprived of a meaningful chance to be heard on its own reply.
  • Such a fundamental defect at the assessment stage is not cured merely because the appeal was separately dismissed ex-parte; both stand vitiated together.

Sections Involved

  • Section 73, CGST Act, 2017 - determination of tax not paid/short paid for reasons other than fraud.
  • Section 75(4), CGST Act, 2017 - mandatory opportunity of personal hearing.

Decision – In Favour of

Decided in favour of the assessee; both orders quashed and matter remanded for fresh adjudication.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 768 of 2025
  • Coram: Justice Pankaj Bhatia
  • Date: 12th August, 2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.