Facts of the Case

M/S Swan Advertising Private Limited challenged an order dated 29.08.2024 passed under Section 73 of the GST Act, 2017, along with the appellate order dated 26.07.2025 dismissing its appeal. The petitioner's specific grievance was that despite a clear demand for personal hearing made in its reply to the show cause notice, no opportunity of personal hearing was accorded before the adverse order was passed, in breach of Section 75(4) of the GST Act.

Issues Involved

  1. Whether denial of a personal hearing specifically requested in the reply to a show cause notice vitiates the resultant Section 73 order.
  2. Whether the fact that the pro forma reply-form itself did not carry a checked box for hearing negates a hearing request made in the body of the reply.

Petitioner's Arguments

  • Despite a specific demand for personal hearing in the reply to the show-cause notice, no opportunity of personal hearing was accorded while passing the order under Section 73.
  • The issue is covered by Ola Fleet Technologies Private Limited v. State of U.P. (Writ Tax No.855 of 2024, decided 22.07.2024) and Bharat Mint and Allied Chemicals v. Commissioner Commercial Tax & Ors., 2022 (4) ADJ 75.

Respondent's Arguments

  • Learned Standing Counsel, on instructions, stated that although the reply to the show-cause notice mentioned a demand for personal hearing, no such demand had been made in the designated column of the prescribed form.

Court Order / Findings

  • The Court held that the order was passed without compliance with the principles of natural justice, contrary to the mandate of Section 75(4) of the GST Act, notwithstanding any discrepancy in the pro forma column.
  • Following Ola Fleet Technologies, the orders dated 29.08.2024 and 26.07.2025 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

  • Where an assessee's reply to a show-cause notice records a request for personal hearing in substance, a failure to accord that hearing cannot be excused merely because a designated checkbox in the prescribed reply form was left unmarked.
  • Section 75(4) protects the substance of the right to be heard, not merely its formal recording in a portal field.

Sections Involved

  • Section 73, CGST/UP GST Act, 2017 — determination of tax not paid or short paid.
  • Section 75(4), CGST/UP GST Act, 2017 — mandatory personal hearing on request or where adverse decision contemplated.

Decision – In Favour of

Assessee. Impugned orders quashed; matter remanded for fresh adjudication after opportunity of hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 746 of 2025; Neutral Citation No. 2025:AHC-LKO:46410; Coram: Hon'ble Pankaj Bhatia, J.; Order dated 08.08.2025.

Link to Download the Order

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