Facts of the Case

M/S Aghoreshwar Traders, through its proprietor Rajesh Kumar Singh, challenged an order dated 27.08.2024 passed under Section 73 of the GST Act and an appellate order dated 07.08.2025 dismissing its appeal as time-barred. The petitioner's grievance was that no opportunity of personal hearing was granted before the demand order was passed.

Issues Involved

  1. Whether an order under Section 73 can be sustained where the show cause notice records “NA” against the column for personal hearing.
  2. Whether the consequent appellate dismissal on limitation survives once the original order is found to be procedurally infirm.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73.
  • The issue is squarely covered by this Court's decision in Mahaveer Trading Company vs. Deputy Commissioner, State Tax (Writ Tax No. 303 of 2024).

Respondent's Arguments

  • The Standing Counsel, on instructions, confirmed that “NA” had indeed been mentioned against personal hearing in the show cause notice, effectively conceding the factual premise of the challenge.

Court Order / Findings

  • On the sole ground that no personal hearing was afforded, and following Mahaveer Trading Company, the Court allowed the petition.
  • Both the assessment order dated 27.08.2024 and the appellate order dated 07.08.2025 were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after granting an opportunity of hearing.

Important Clarification

  • Marking “NA” against the personal-hearing column in a show cause notice, rather than actually offering and fixing a hearing, amounts to non-compliance with Section 75(4) of the GST Act and vitiates the resultant demand order.
  • Such a procedural defect in the original order is not cured merely because the appeal was independently rejected on limitation; the writ court can still interfere and remand.

Sections Involved

  • Section 73, CGST/UPGST Act, 2017 — demand of tax not paid/short paid for reasons other than fraud.
  • Section 75(4), CGST Act, 2017 — mandatory personal hearing requirement.

Decision – In Favour of

Assessee. Both impugned orders were quashed and the matter remanded for a fresh order after hearing.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: Writ Tax No. 819 of 2025
Coram: Hon'ble Mr. Justice Pankaj Bhatia
Date of Order: 25.08.2025

Link to Download the Order

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