Facts of the Case

M/S Shubham Agencies, through its proprietor Amit Srivastava, challenged an order dated 26.07.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, and the subsequent order dated 24.10.2025 dismissing the statutory appeal as time-barred. The petitioner contended no opportunity of personal hearing had been granted before the Section 73 order was passed, and that the date fixed for personal hearing coincided with the date for filing the reply itself.

Issues Involved

  1. Whether an adjudication order under Section 73 of the UPGST Act can stand where no genuine, separately-dated opportunity of personal hearing was afforded to the assessee, as mandated by Section 75(4).
  2. Whether the appellate authority's dismissal on limitation could survive once the underlying order itself is found procedurally infirm.

Petitioner's Arguments

  • The petitioner argued that the personal hearing date and the reply-filing date were identical, effectively denying any real opportunity of hearing, and relied on the Division Bench ruling in Mahaveer Trading Company vs Deputy Commissioner, State Tax to contend the order was unsustainable on this ground alone.

Respondent's Arguments

  • The Additional Chief Standing Counsel for the State, on instructions, fairly conceded that the date of personal hearing and the date of filing the reply were indeed the same.

Court Order / Findings

  • The Court reiterated its Division Bench holding in Mahaveer Trading Company that Section 75(4) makes an opportunity of personal hearing mandatory before any adverse adjudication order, and that this requirement cannot be diluted merely because the substantive law has changed from the pre-GST regime.
  • It noted the Commissioner, Commercial Tax, U.P. had itself issued Office Memo No. 1406 dated 12.11.2024 acknowledging systemic defects — hearing dates left blank, hearing dates preceding or coinciding with reply dates, and order dates not matching hearing dates — and directing correction across field formations.
  • Applying this dictum to the identical defect found in the present case, the Court quashed both the assessment order dated 26.07.2024 and the appellate order dated 24.10.2025, allowed the petition, and remanded the matter for a fresh order after granting a genuine personal hearing.

Important Clarification

  • A show cause reply date and personal hearing date fixed on the same day (or hearing preceding the reply date) does not satisfy Section 75(4); such defects vitiate the adjudication order regardless of the merits of the tax demand, and departmental administrative memos acknowledging the defect strengthen an assessee's case.

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. 1517 of 2025
  • Coram: Justice Jaspreet Singh
  • Date of Order: 09.12.2025

Link to Download the Order

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