Facts of the Case

The petitioner challenged an order dated 25.04.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017 and the subsequent appellate order dated 17.01.2025 dismissing its appeal as beyond limitation. The petitioner's grievance was that no opportunity of personal hearing was granted before the Section 73 order was passed.

Issues Involved

  1. Whether an assessment order under Section 73 passed without granting an opportunity of personal hearing, contrary to Section 75(4), can be sustained merely because the assessee filed written replies to the show-cause notice.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73, an issue already settled by a Division Bench of the same Court in Mahaveer Trading Company vs. Deputy Commissioner, State Tax.

Respondent's Arguments

  • On instructions, learned Standing Counsel conceded that no date was in fact fixed for personal hearing.

Court Order / Findings

  • Following Mahaveer Trading Company, the Court reiterated that an opportunity of personal hearing must be provided under Section 75(4) before any adjudication order is passed, and that this mandatory requirement of procedural law cannot be dispensed with merely because the substantive law has changed from the earlier tax regime.
  • The Court noted the Commissioner, Commercial Tax, U.P.'s own Office Memo No. 1406 dated 12.11.2024, issued after similar defects were noticed across the State, flagging recurring lapses such as columns for date/time of personal hearing being left as 'N.A.' and hearing dates preceding or coinciding with the reply date.
  • Since the Respondent's own counsel conceded that no personal hearing date was fixed, the impugned orders dated 25.04.2024 and 17.01.2025 could not be sustained and were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after granting an opportunity of hearing to the petitioner.

Important Clarification

  • A taxpayer's participation by filing written replies to a show-cause notice on multiple occasions does not substitute for a personal hearing; Section 75(4) mandates an opportunity of hearing wherever an adverse decision is contemplated, and its denial vitiates the order regardless of how thorough the written exchange was.
  • A departmental office memorandum flagging systemic defects in recording personal-hearing details is itself strong corroboration where a taxpayer alleges denial of hearing.

Sections Involved

  • Section 73, UP GST Act, 2017 -- determination of tax not paid or short paid, other than by reason of fraud.
  • Section 75(4), UP GST Act, 2017 -- mandatory opportunity of personal hearing where an adverse decision is contemplated.

Decision – In Favour of

Assessee. The Section 73 order and the appellate dismissal were quashed and the matter remanded for a fresh order after personal hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1067 of 2025; Coram: Justice Jaspreet Singh; Order dated 09.10.2025.

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