Facts of the Case

M/S Ajai Iron Store, through its proprietor Ajay Kumar Gupta, challenged an order dated 25.06.2022 passed under Section 74 of the GST Act and an appellate order dated 09.01.2024 dismissing its appeal as time-barred. The sole ground pressed was that no genuine opportunity of hearing had been granted, since the notice mentioned the same date for both filing the reply and the personal hearing — a fact the State's counsel did not dispute.

Issues Involved

  1. Whether an order is sustainable where the underlying notice fixed an identical date for filing the reply and for the personal hearing, effectively denying any real opportunity to be heard.

Petitioner's Arguments

  • No genuine opportunity of hearing was granted, as the reply date and the hearing date in the notice were the same, making it impossible to be meaningfully heard after filing a reply.

Respondent's Arguments

  • The Standing Counsel confirmed that the notice did indeed mention the same date for both the filing of the reply and the date of hearing.

Court Order / Findings

  • On this sole, conceded ground, and following its earlier judgment in Mahaveer Trading Company v. Deputy Commissioner, State Tax and Anr. (Writ Tax No. 303 of 2024, decided 04.03.2024), the Court allowed the petition.
  • Both the original order dated 25.06.2022 and the appellate order dated 09.01.2024 (dismissing the appeal on limitation) were quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after giving the petitioner a genuine opportunity of hearing.

Important Clarification

  • Fixing the same date for filing a reply and for the personal hearing is treated as a fatal procedural defect — it makes it structurally impossible for the taxpayer to be heard on the reply it has just filed, and vitiates the resulting order regardless of a subsequent limitation-barred appeal.
  • This point is now decided by direct application of the Mahaveer Trading Company precedent without further elaboration, indicating it is treated as settled law in this jurisdiction.

Sections Involved

  • Section 74, CGST/UP GST Act, 2017 — determination of tax involving fraud, wilful misstatement or suppression.
  • Section 75(4), CGST Act, 2017 — mandatory opportunity of personal hearing.

Decision – In Favour of

In favour of the Assessee — both orders are quashed for the notice's fatal same-date defect, and the matter is remanded for a fresh hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Neutral Citation No. 2025:AHC-LKO:41138; Writ Tax No. 633 of 2025; Coram: Hon'ble Pankaj Bhatia, J.; Order dated 18.07.2025.

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