Facts of the Case

M/S Shri Balaji Provision Store, through its proprietor Rakesh Kumar, challenged an order dated 08.12.2023 passed under Section 73 of the U.P. GST Act, 2017, as well as the appellate order dated 08.10.2025 dismissing its appeal as time-barred. The petitioner's grievance was that no opportunity of personal hearing had been granted before the Section 73 order was passed.

Issues Involved

  1. Whether the Section 73 adjudication order is sustainable in the absence of a genuine personal hearing under Section 75(4).

Petitioner's Arguments

  • No date was fixed for personal hearing before the impugned order was passed, in violation of the mandatory requirement under Section 75(4) of the GST Act.
  • The issue was covered by the Division Bench decision 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 no date had in fact been fixed for personal hearing.

Court Order / Findings

  • The Court reiterated the ratio of Mahaveer Trading Company: opportunity of personal hearing under Section 75(4) is mandatory before any adverse adjudication order, and merely recording an assessee's written replies without affording an oral hearing does not meet this requirement.
  • The Court also referred to the Commissioner, Commercial Tax, U.P.'s Office Memo No. 1406 dated 12.11.2024, which acknowledged and sought to correct the practice of leaving the personal-hearing-date column as 'N.A.' or misaligned with the reply date across field formations.
  • Since it was undisputed that no personal hearing date was fixed, the impugned orders dated 08.12.2023 and 08.10.2025 were quashed, the petition allowed, and the matter remanded for a fresh order after affording a hearing.

Important Clarification

  • An adjudication order under Section 73/74 passed without fixing any date for personal hearing is unsustainable, irrespective of whether the noticee has filed written replies to the show cause notice — Section 75(4) requires an actual opportunity of oral hearing, not merely consideration of paper replies.

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. 1272 of 2025
  • Coram: Hon'ble Jaspreet Singh, J.
  • Date of Order: 10 November 2025

Link to Download the Order

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