Facts of the Case

The petitioner, Ananya Motors Private Limited, through its Authorized Signatory Shubham Tiwari, challenged an order dated 31.08.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, along with an order dated 23.09.2025 dismissing its appeal as barred by limitation. The petitioner's grievance, raised before the Lucknow Bench, was twofold: first, that no genuine opportunity of personal hearing had been granted before the demand order was passed; and second, that the date fixed in the show cause notice for personal hearing was in fact prior to the date by which the petitioner was required to file its reply — a sequence learned Standing Counsel, on instructions, did not dispute before the Court.

Issues Involved

  1. Whether an order under Section 73 can be sustained where the date fixed for personal hearing preceded the date fixed for filing the reply to the show cause notice.
  2. Whether this sequencing defect falls within the principle laid down in Mahaveer Trading Company regarding mandatory personal hearing.

Petitioner's Arguments

  • The date of personal hearing was fixed prior to the date for filing the reply, making a meaningful hearing impossible and rendering the process a mere formality.
  • The issue stood covered by the Division Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax, Writ Tax No. 303 of 2024.

Respondent's Arguments

  • Learned Standing Counsel, on instructions, confirmed that the date of personal hearing was indeed prior to the date fixed for filing the reply.

Court Order / Findings

  • Reiterating the principle from Mahaveer Trading Company that Section 75(4) mandates a genuine opportunity of personal hearing before any adverse order, and referencing the Commissioner's Office Memo No. 1406 dated 12.11.2024 flagging exactly this sequencing defect as a systemic problem to be discontinued, the Court held the impugned process defective.
  • The Court held that having the hearing date precede the reply date defeats the very purpose of a personal hearing, since the assessee has no reply on record to be heard upon.
  • The orders dated 31.08.2024 and 23.09.2025 were quashed, and the writ petition allowed.
  • The matter was remanded to the assessing authority to pass a fresh order after granting a proper opportunity of personal hearing to the petitioner.

Important Clarification

  • A personal hearing fixed for a date before the assessee's reply to the show cause notice is even due is not a valid or effective hearing under Section 75(4), since it deprives the authority of any actual submissions to consider — such sequencing defects are treated on par with an outright denial of hearing.
  • The department's own internal Office Memo acknowledging and seeking to discontinue this exact defect strengthens an assessee's case where the same fact pattern recurs in its proceedings, and Standing Counsel's candid concession of the date-sequencing error on instructions is generally sufficient for the Court to grant relief without further factual inquiry.

Sections Involved

  • Section 73, UPGST Act, 2017 – determination of tax not paid for reasons other than fraud.
  • Section 75(4), CGST/UPGST Act, 2017 – mandatory opportunity of personal hearing before an adverse order is passed.

Decision – In Favour of

Allowed in favour of the Assessee — the Section 73 order and the appeal dismissal were quashed for a defective personal hearing sequence, and the matter remanded for fresh adjudication.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1227 of 2025
  • Coram: Hon'ble Jaspreet Singh, J.
  • Date of Order: 3 November 2025

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.