Facts of the Case

M/S Servottam Industries (GSTIN 09ATKPA3811E1Z3), through its proprietor Shri Azaz Ahmad, challenged an order dated 03.07.2021 passed under Section 74(1) of the U.P. Goods and Services Tax Act, 2017, as well as the appellate order dated 29.10.2025 dismissing its appeal as time-barred. The core grievance was that although the petitioner had appeared and filed replies to the show cause notice on three separate dates (23.09.2022, 07.10.2022 and 27.10.2022), no date, time or venue for personal hearing was ever communicated before the adjudicating authority proceeded to pass a merit order confirming the demand.

Issues Involved

  1. Whether an order passed under Section 74 of the UPGST Act without affording an opportunity of personal hearing is sustainable, even where the assessee has submitted written replies to the show cause notice.
  2. Whether the dictum in Mahaveer Trading Company vs. Deputy Commissioner, State Tax applies squarely to the facts of the present case.

Petitioner's Arguments

  • No date was ever fixed for personal hearing despite the petitioner appearing and filing detailed replies on three occasions in response to the notice.
  • The order is vitiated for want of personal hearing, an issue already conclusively decided in favour of assessees by the Division Bench in Mahaveer Trading Company vs. Deputy Commissioner, State Tax [2024:AHC:38820-DB].
  • Personal hearing is a mandatory procedural safeguard under Section 75(4) of the Act wherever an adverse decision is contemplated, and cannot be dispensed with merely because written replies were filed.

Respondent's Arguments

  • The Additional Chief Standing Counsel, on instructions, candidly conceded that no date was fixed for personal hearing in the case.
  • The State pointed to a corrective Office Memo No. 1406 dated 12.11.2024 issued by the Commissioner, Commercial Tax, U.P., acknowledging systemic lapses in mentioning personal hearing dates in adjudication orders across the State.

Court Order / Findings

  • The Court reiterated its Division Bench ruling in Mahaveer Trading Company, holding that opportunity of personal hearing must be provided before any assessment/adjudication order is passed, and mere filing of written replies without an oral hearing does not satisfy Section 75(4) of the Act.
  • The Court noted the Commissioner's Office Memo directing field formations to correctly record the date, time and venue of personal hearing, and to ensure the order-passing date coincides with the hearing date.
  • Since the dictum in Mahaveer Trading Company applied squarely, the impugned orders dated 03.07.2021 and 29.10.2025 were quashed and the writ petition was allowed.
  • The matter was remanded to the assessing authority to pass a fresh order after granting an opportunity of hearing to the petitioner.

Important Clarification

  • Filing of written replies to a show cause notice does not dispense with the independent, mandatory requirement of personal hearing under Section 75(4) of the GST Act wherever an adverse order is contemplated.
  • The date of passing the adjudication order must be commensurate with the date of personal hearing; a mismatch, or absence of any hearing date altogether, renders the order procedurally defective and liable to be quashed.

Sections Involved

  • Section 74(1), UPGST Act, 2017 — determination of tax not paid by reason of fraud, wilful misstatement or suppression of facts.
  • Section 75(4), UPGST Act, 2017 — mandates personal hearing where an adverse decision is contemplated against the taxable person.
  • Section 107, UPGST Act, 2017 — appellate remedy, whose dismissal on limitation was also under challenge here.

Decision – In Favour of

The decision is in favour of the assessee (Servottam Industries). Both the original demand order and the appellate dismissal were quashed, with the matter remanded for a fresh decision after a proper personal hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1279 of 2025; Coram: Hon'ble Jaspreet Singh, J.; Order dated 11.11.2025.

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