Facts of the Case

M/S Sri Dayal Loha Bhandar, through its proprietor Shri Uma Shanker Gupta, challenged an order dated 07.07.2023 passed under Section 73 of the GST Act, 2017, along with the appellate order dated 28.02.2025 dismissing its appeal as time-barred. The petitioner's grievance was that no genuine opportunity of hearing was granted before the Section 73 order was passed, since the notice gave the same date for filing reply and for personal hearing, making a meaningful hearing impossible.

Issues Involved

  1. Whether fixing an identical date for filing reply and for personal hearing amounts to denial of opportunity of hearing under Section 75(4) of the GST Act.
  2. Whether the ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr. applies to quash both the assessment and the limitation-barred appellate order.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73.
  • The issue is covered by the Division Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr., decided 04.03.2024.

Respondent's Arguments

  • Learned Standing Counsel, based on instructions, confirmed that the same date had been given in the notice for both the date of reply and the date of personal hearing.

Court Order / Findings

  • Applying the dictum in Mahaveer Trading Company — that the date of reply to a show-cause notice must precede the date of personal hearing, and that identical or unspecified hearing dates render the hearing illusory — the Court held the impugned order unsustainable.
  • The orders dated 07.07.2023 and 28.02.2025 were accordingly quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after giving the petitioner an opportunity of hearing.

Important Clarification

  • Fixing the same date for filing a reply to a show-cause notice and for personal hearing does not satisfy the mandatory requirement of Section 75(4) of the GST Act — the reply date must precede the hearing date so the adjudicating authority can meaningfully consider the reply before hearing the assessee.
  • This defect, once established on the face of the notice, is by itself sufficient to have the order quashed and remanded, regardless of other merits.

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 opportunity of personal hearing.

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. 441 of 2025; Coram: Hon'ble Pankaj Bhatia, J.; Order dated 09.09.2025.

Link to Download the Order

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