Facts of the Case

M/S Vivek Construction And Suppliers Office challenged an order dated 14.02.2025 passed under Section 73 of the U.P. GST Act, 2017, as well as the appellate order dated 30.09.2025 dismissing its appeal as time-barred. The petitioner's grievance was that no opportunity of personal hearing had been granted before the adverse order under Section 73 was passed, and that the field authority had not even fixed a date for personal hearing. The petitioner relied on the Division Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr. (2024:AHC:38820-DB), which had held such a lapse fatal to an adjudication order.

Issues Involved

  1. Whether passing a Section 73 order without fixing any date for personal hearing violates the mandatory requirement of Section 75(4) of the GST Act.
  2. Whether the ruling in Mahaveer Trading Company applies to quash both the assessment and the limitation-barred appellate order.
  3. Whether the matter should be remanded for a fresh order after granting a genuine hearing opportunity.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73.
  • In the absence of such opportunity, the order cannot be sustained, an issue already settled by the Division Bench in Mahaveer Trading Company.

Respondent's Arguments

  • Learned Standing Counsel, on instructions, admitted that no date was in fact fixed for personal hearing.

Court Order / Findings

  • The Court extracted the Mahaveer Trading Company ruling at length, reiterating that opportunity of personal hearing under Section 75(4) is mandatory before any adverse adjudication order, and that the Commissioner's Office Memo No. 1406 dated 12.11.2024 had itself flagged systemic defects such as hearing columns marked N.A. and hearing dates not aligned with the order date.
  • Finding the dictum in Mahaveer Trading Company squarely applicable, the orders dated 14.02.2025 and 30.09.2025 were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after giving the petitioner an opportunity of hearing.

Important Clarification

  • Personal hearing under Section 75(4) of the GST Act is not a mere formality but a mandatory pre-condition to any adverse adjudication order; failure to even fix a hearing date is fatal irrespective of whether the noticee filed written replies.
  • The Commissioner, Commercial Tax, U.P.'s Office Memo No. 1406 dated 12.11.2024 requiring proper hearing dates and consistency between the hearing date and the order date binds field formations and is judicially enforced.

Sections Involved

  • Section 73, UP GST Act, 2017 — determination of tax not paid or short paid.
  • Section 75(4), UP GST Act, 2017 — mandatory opportunity of personal hearing before an adverse order.

Decision – In Favour of

Assessee. Both impugned orders quashed and matter remanded for fresh adjudication after a genuine hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1154 of 2025; Coram: Hon'ble Jaspreet Singh, J.; Order dated 16.10.2025.

Link to Download the Order

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