Facts of the Case

Qazi Ali Raza and another challenged an order dated 11.02.2025 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, along with the subsequent appellate order dated 04.10.2025 dismissing their appeal as time-barred. The petitioners' grievance mirrored a recurring pattern before the Allahabad High Court: although they had appeared and filed replies to the show cause notice on three occasions (23.09.2022, 07.10.2022 and 27.10.2022), no date, time or venue for personal hearing was ever fixed before the adjudicating authority proceeded to confirm the demand on merits, also allegedly in violation of Section 75(7) of the Act.

Issues Involved

  1. Whether an order under Section 73 of the UPGST Act passed without personal hearing, despite the assessee filing written replies, can be sustained.
  2. Whether the order also violated Section 75(7) of the Act, and whether the ruling in Mahaveer Trading Company applied to the facts.

Petitioner's Arguments

  • No opportunity of personal hearing was granted at any stage despite the petitioners' active participation through written replies on three separate dates.
  • The order also violated Section 75(7) of the Act, 2017.
  • The issue stood conclusively covered by the Division Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax [2024:AHC:38820-DB].

Respondent's Arguments

  • The Additional Chief Standing Counsel, on instructions, fairly conceded that no date had been fixed for personal hearing in this case as well.

Court Order / Findings

  • The Court reiterated the binding principle from Mahaveer Trading Company that personal hearing is basic to procedural law under taxing statutes and must be granted before any adjudication order, and that revenue authorities cannot be permitted to deny this right merely on account of a changed statutory regime.
  • The Court also referred to the Commissioner, Commercial Tax's corrective Office Memo No. 1406 dated 12.11.2024 flagging the systemic practice of leaving personal-hearing columns blank or mismatched with reply/order dates.
  • Finding the dictum squarely applicable, the Court quashed both the impugned order dated 11.02.2025 and the appellate order dated 04.10.2025, and allowed the writ petition.
  • The matter was remanded to the assessing authority to pass a fresh order after granting the petitioners a proper opportunity of hearing.

Important Clarification

  • Repeated instances of GST orders being passed without recording a personal-hearing date reflect a systemic administrative lapse that the Allahabad High Court has now flagged through a corrective departmental circular, not merely an isolated defect.
  • Assessees who diligently file replies to a show cause notice but are never afforded an oral hearing before the adverse order retain a strong ground for quashing under Section 75(4)/(7) of the GST Act.

Sections Involved

  • Section 73, UPGST Act, 2017 — demand for tax not paid/short paid for reasons other than fraud or wilful misstatement.
  • Section 75(7), UPGST Act, 2017 — bars the adjudicating authority from confirming a demand exceeding the amount specified in the notice, or on grounds not specified therein.
  • Section 107, UPGST Act, 2017 — the appellate provision under which the delayed appeal was earlier dismissed.

Decision – In Favour of

The decision is in favour of the assessees (Qazi Ali Raza and another). Both the original demand order and the appellate dismissal were quashed, with the matter remanded for a fresh decision after due personal hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1464 of 2025; Coram: Hon'ble Jaspreet Singh, J.; Order dated 04.12.2025.

Link to Download the Order

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