Facts of the Case

M/S Kandarp Construction India Pvt. Ltd. challenged an order dated 28 August 2024 passed under Section 73 of the UP GST Act, 2017, as well as the order dated 30 October 2025 dismissing its appeal as beyond limitation. The petitioner contended that no opportunity of personal hearing was granted, and that the date fixed for personal hearing preceded the date fixed for filing the reply.

Issues Involved

  1. Whether an assessment order is sustainable where the personal hearing date was fixed prior to the date for filing reply to the show cause notice, in violation of Section 75(4).

Petitioner's Arguments

  • No genuine opportunity of hearing was granted, and the sequencing of dates (personal hearing before reply) rendered the exercise a mere formality, squarely covered by the Division Bench ruling in Mahaveer Trading Company v. Deputy Commissioner, State Tax (Writ Tax No. 303 of 2024).

Respondent's Arguments

  • The Additional Chief Standing Counsel, on instructions, fairly conceded that the date of personal hearing was indeed prior to the date of filing of reply.

Court Order / Findings

  • Relying on Mahaveer Trading Company, the Court reiterated that opportunity of personal hearing is basic to procedural fairness before any adverse adjudication order, and that the Commissioner, Commercial Tax, U.P. had itself issued Office Memo No. 1406 dated 12.11.2024 acknowledging the systemic defect of fixing hearing dates before, or on the same date as, the reply deadline, and directing correction.
  • Since the personal hearing date preceded the reply date, the mandate of Section 75(4) stood breached; the impugned orders dated 28.08.2024 and 30.10.2025 were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after granting a genuine opportunity of hearing.

Important Clarification

  • Fixing the personal hearing date before (or on) the date prescribed for filing a reply to the show cause notice is a substantive violation of Section 75(4), regardless of formal compliance with issuing a hearing notice – as recognised even by the department's own internal Office Memo.
  • The date of the final order under Section 73(9)/74(9) must be commensurate with (i.e., on or after) the date of personal hearing.

Sections Involved

  • Section 73, UPGST Act, 2017 – demand of tax not involving fraud or suppression.
  • Section 75(4), CGST Act, 2017 – mandatory opportunity of personal hearing.

Decision – In Favour of

Decided in favour of the Assessee – both the original demand order and the time-barred appeal dismissal are quashed, and the matter is remanded for fresh adjudication after a genuine personal hearing.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1379 of 2025
  • Coram: Hon'ble Justice Jaspreet Singh
  • Date of Order: 1 December 2025

Link to Download the Order

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