Facts of the Case

M/S Jagdish Enterprises challenged an order dated 24.08.2024 passed under Section 73 of the GST Act, along with the appellate order dated 18.08.2025 dismissing its appeal as beyond limitation. The petitioner's contention was that no opportunity of hearing had been granted while passing the order under Section 73, as the show cause notice had "NA" mentioned in front of the tab for the date of personal hearing.

Issues Involved

  1. Whether the marking of "NA" against the personal hearing date column in the show cause notice amounted to denial of the mandatory opportunity of hearing under Section 73.
  2. Whether the assessment order was liable to be quashed on this ground, notwithstanding that the petitioner had not separately requested a hearing.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73; "NA" was mentioned against the tab for the date of personal hearing in the show cause notice.
  • The issue stood covered by Mahaveer Trading Company v. Deputy Commissioner, State Tax and Anr. (Writ Tax No.303 of 2024) and Bharat Mint and Allied Chemicals v. Commissioner Commercial Tax & Ors.; 2022 (4) ADJ 75.

Respondent's Arguments

  • The Standing Counsel submitted that in the reply submitted by the petitioner, no request had been made for grant of a hearing.

Court Order / Findings

  • On the sole ground of "NA" being marked against the personal hearing date, and following the two precedents cited, the Court allowed the petition.
  • The orders dated 24.08.2024 and 18.08.2025 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

  • Consistent with its earlier rulings, the Allahabad High Court treats a show cause notice that marks "NA" for the personal hearing date as a denial of the statutorily mandated hearing under Section 73, warranting quashing of the resultant order regardless of whether the taxpayer separately sought a hearing in its reply.

Sections Involved

  • Section 73 of the CGST/UPGST Act, 2017 — requires an opportunity of hearing before confirming a demand where fraud/suppression is not alleged.

Decision – In Favour of

Assessee. The order and appellate dismissal were quashed and the matter remanded for fresh adjudication with a hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 880 of 2025; Coram: Justice Pankaj Bhatia; Order dated 03.09.2025.

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.