Facts of the Case

The petitioner, M/s Yadav Traders through its proprietor Manoj Kumar Yadav, challenged an order dated 31.08.2024 passed under Section 73 of the GST Act, as well as the appellate order dated 23.06.2025 which dismissed the petitioner's appeal as being filed beyond the period of limitation.

Issues Involved

  1. Whether the petitioner was denied a genuine opportunity of hearing in the proceedings culminating in the order dated 31.08.2024.
  2. Whether, on that ground, the assessment order and the appellate rejection order were liable to be quashed.

Petitioner's Arguments

  • No effective opportunity of hearing was granted to the petitioner before the assessment order was passed.

Respondent's Arguments

  • Learned Standing Counsel for the State, on instructions, candidly stated that in the notice issued to the petitioner, the date fixed for hearing was earlier in point of time than the date fixed for filing the reply.

Court Order / Findings

  • On the sole ground that the hearing date preceded the reply-filing date – rendering the notice incapable of affording a real opportunity to be heard – and following the earlier judgment of the Court in Mahaveer Trading Company v. Deputy Commissioner, State Tax and Another (Writ Tax No. 303 of 2024, decided 04.03.2024), the petition was allowed.
  • Both the assessment order dated 31.08.2024 and the appellate order dated 23.06.2025 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

  • A show cause notice that fixes a personal hearing date earlier than the deadline for filing a written reply defeats the very purpose of the hearing and amounts to denial of a genuine opportunity to be heard, warranting quashing of the resultant order regardless of the merits of the underlying tax demand.
  • Where the Department itself concedes such a sequencing defect on instructions, courts have consistently applied precedent (here, Mahaveer Trading Company) to grant relief without a detailed merits inquiry.

Sections Involved

  • Section 73, GST Act, 2017 – provision under which the assessment order raising the demand was passed.
  • Opportunity of hearing – procedural safeguard under the natural justice framework embedded in the assessment and appellate process under the GST Act.

Decision – In Favour of

The petition is allowed in favour of the Assessee. Both the assessment order and the appellate order are quashed and the matter is remanded for a fresh order after affording a genuine opportunity of hearing.

Case Details

  • Court: High Court of Judicature at Allahabad (Lucknow Bench)
  • Case No.: Writ Tax No. 631 of 2025
  • Neutral Citation: 2025:AHC-LKO:42096
  • Coram: Hon'ble Mr. Justice Pankaj Bhatia
  • Date of Order: 23.07.2025

Link to Download the Order

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