Facts of the Case

M/S Ramshankar, through its proprietor, challenged an order dated 28.08.2024 passed under Section 73 of the GST Act, as well as the subsequent appellate order dated 30.04.2025 dismissing its appeal. The sole ground urged before the High Court was that no opportunity of hearing had been granted to the petitioner before the assessment order was passed.

Issues Involved

  1. Whether the assessment order under Section 73 was vitiated for want of an opportunity of personal hearing to the petitioner.
  2. Whether the appellate order affirming the assessment could survive if the underlying order suffered from a natural-justice defect.

Petitioner's Arguments

  • No opportunity of hearing was granted before passing the order dated 28.08.2024 under Section 73 of the GST Act.
  • The issue was squarely covered by the Division Bench decision in Mahaveer Trading Company v. Deputy Commissioner State Tax and Another (Writ Tax No.303 of 2024, decided on 04.03.2024).

Respondent's Arguments

  • The Standing Counsel did not dispute the applicability of the Mahaveer Trading Company precedent to the facts of the case.

Court Order / Findings

  • Considering and following the judgment in Mahaveer Trading Company, the Court quashed both the impugned assessment order and the appellate order dated 30.04.2025.
  • The matter was remanded to the Assessing Authority to pass a fresh order in accordance with law, after providing the petitioner an adequate opportunity of hearing.
  • The writ petition was allowed.

Important Clarification

  • Denial of personal hearing before passing an order under Section 73 is a fatal procedural infirmity that renders the order liable to be quashed, regardless of subsequent dismissal of the appeal — the Allahabad High Court continues to apply its settled Mahaveer Trading Company line of precedent to enforce this safeguard.

Sections Involved

  • Section 73 of the CGST/UPGST Act, 2017 — governs determination of tax not paid or short paid, requiring a proper opportunity of hearing before an adverse order is passed.

Decision – In Favour of

Assessee. Both the assessment order and the appellate order were quashed, and the matter remanded for fresh adjudication with an opportunity of hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 688 of 2025; Neutral Citation No. 2025:AHC-LKO:43142; Coram: Justice Pankaj Bhatia; Order dated 28.07.2025.

Link to Download the Order

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