Facts of the Case

M/S Shivam Traders, through its proprietor Shashi Sahu, challenged an order dated 19.04.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, and the subsequent appellate order dated 08.10.2025 dismissing its appeal as beyond limitation. The petitioner's grievance mirrored a recurring pattern before the same Court: no genuine opportunity of personal hearing had been granted despite the petitioner having appeared and filed replies on three separate dates fixed by the department.

Issues Involved

  1. Whether an adjudication order can stand where the assessee did appear and reply on record, but was never separately granted a personal hearing before the adverse order was passed.
  2. Whether the appellate dismissal on limitation could survive once the underlying assessment order itself is found procedurally infirm on this ground.

Petitioner's Arguments

  • The petitioner submitted that no opportunity of hearing was granted before the Section 73 order was passed, notwithstanding that it had appeared and submitted replies on 23.09.2022, 07.10.2022 and 27.10.2022, and relied on the Division Bench ruling in Mahaveer Trading Company vs Deputy Commissioner, State Tax to argue the order was unsustainable for want of a genuine hearing.

Respondent's Arguments

  • The Standing Counsel for the State, on instructions, stated that no date was in fact fixed for personal hearing in the proceedings.

Court Order / Findings

  • Reiterating its Division Bench holding in Mahaveer Trading Company, the Court held Section 75(4) mandates a genuine opportunity of personal hearing before any adverse adjudication order, distinct from merely recording replies filed in response to a show cause notice.
  • It noted the Commissioner, Commercial Tax, U.P.'s Office Memo No. 1406 dated 12.11.2024, which itself flagged systemic defects across field formations in fixing (or failing to fix) personal hearing dates properly.
  • Since the record here confirmed no personal hearing date was ever fixed despite the petitioner engaging with the notice on three occasions, the Court quashed both the assessment order dated 19.04.2024 and the appellate order dated 08.10.2025, allowed the petition, and remanded the matter for a fresh order after granting a genuine personal hearing.

Important Clarification

  • Filing a written reply to a show cause notice, even on multiple occasions, does not substitute for the mandatory, separately-scheduled opportunity of personal hearing under Section 75(4) — an adjudicating authority that proceeds to a merit order without ever fixing a hearing date renders the entire order void, regardless of how substantively the assessee engaged on paper.

Sections Involved

  • Section 73, Uttar Pradesh Goods and Services Tax Act, 2017 – determination of tax not paid or short paid for reasons other than fraud.
  • Section 75(4), Uttar Pradesh Goods and Services Tax Act, 2017 – mandatory opportunity of personal hearing before an adverse order.

Decision – In Favour of

Allowed; entirely in favour of the Assessee, with both the assessment and appellate orders quashed and the matter remanded for a fresh hearing.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1366 of 2025
  • Coram: Justice Jaspreet Singh
  • Date of Order: 24.11.2025

Link to Download the Order

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