Facts of the Case

M/S Shree Infrapromoters Private Limited, Lucknow, challenged the order dated 29.11.2023 passed under Section 73 of the U.P. GST Act, 2017, and the subsequent appellate order dated 06.10.2025 which dismissed its appeal as time-barred. The petitioner contended that no opportunity of personal hearing was granted before the Section 73 order was passed, and that the date fixed for personal hearing coincided with the date fixed for filing the reply itself.

Issues Involved

  1. Whether an adjudication order under Section 73 can be sustained when no genuine opportunity of personal hearing under Section 75(4) was afforded to the assessee.
  2. Whether the practice of fixing the personal hearing date the same as, or before, the reply-filing date satisfies the statutory hearing requirement.

Petitioner's Arguments

  • No opportunity of personal hearing was granted before the Section 73 order was passed; the date of notice and the date of personal hearing were shown as the same.
  • The issue stood squarely covered by the Division Bench ruling in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr., Writ Tax No. 303 of 2024, 2024:AHC:38820-DB.

Respondent's Arguments

  • Learned Standing Counsel, on instructions, confirmed that the date of personal hearing and the date of filing of reply were indeed the same.

Court Order / Findings

  • The Court extensively relied on Mahaveer Trading Company, which held that opportunity of personal hearing under Section 75(4) is mandatory before any adverse adjudication order, and that mere recording of written replies without a subsequent personal hearing does not satisfy this requirement.
  • The Court also noted the Commissioner, Commercial Tax, U.P.'s Office Memo No. 1406 dated 12.11.2024, which specifically flagged the practice of listing personal hearing dates that are 'N.A.' or coincide with/precede the reply date as impermissible and required to be discontinued.
  • Since the dictum in Mahaveer Trading Company squarely applied, the impugned orders dated 29.11.2023 and 06.10.2025 were quashed, the petition was allowed, and the matter remanded for a fresh order after granting a proper hearing.

Important Clarification

  • Section 75(4) mandates an opportunity of personal hearing before any adverse adjudication order under Sections 73/74, and this cannot be substituted merely by recording written replies filed by the noticee.
  • Fixing the personal hearing date on or before the date fixed for filing the reply, or leaving it as 'N.A.', vitiates the hearing and renders the resultant order unsustainable — a defect the U.P. Commercial Tax administration has itself acknowledged and directed field formations to correct.

Sections Involved

  • Section 73, U.P./Central Goods and Services Tax 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.

Decision – In Favour of

Decided in favour of the Assessee. The impugned orders were quashed and the matter remanded for a fresh hearing.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1195 of 2025
  • Coram: Hon'ble Jaspreet Singh, J.
  • Date of Order: 28 October 2025

Link to Download the Order

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