Facts of the Case

The petitioner, M/S Medicine Agencies, through its partner Dinesh Agarwal, challenged the order dated 17.12.2023 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017 and the subsequent appellate order dated 24.09.2025 dismissing its appeal as being beyond limitation, before the Additional Commissioner Grade-II (Appeal), State Tax, Judicial Division III, Lucknow.

Issues Involved

  1. Whether an opportunity of personal hearing was granted to the petitioner before the Section 73 order was passed.
  2. Whether fixing the date of personal hearing on the same date as the date for filing reply to the show cause notice amounts to denial of effective opportunity of hearing under Section 75(4) of the GST Act.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the Section 73 order.
  • The date fixed for submission of reply to the show cause notice and the date of personal hearing were the same, an issue already dealt with by a Division Bench of the same High Court in Mahaveer Trading Company vs. Deputy Commissioner, State Tax (Writ Tax No.303 of 2024).

Respondent's Arguments

  • The learned Standing Counsel for the State, on instructions, fairly conceded that the date of filing reply and the date of personal hearing were indeed the same.

Court Order / Findings

  • Justice Jaspreet Singh extensively relied on the Division Bench ruling in Mahaveer Trading Company, which held that opportunity of personal hearing under Section 75(4) is mandatory before any adverse adjudication order, and that fixing the hearing date the same as, or prior to, the reply date is "non-est" and must be discontinued, per Office Memo No.1406 dated 12.11.2024 issued by the Commissioner, Commercial Tax, U.P.
  • Applying this dictum, the Court held the impugned orders dated 17.12.2023 and 24.09.2025 cannot be sustained and accordingly quashed both orders.
  • The matter was remanded to the assessing authority to pass a fresh order after granting a genuine opportunity of hearing to the petitioner.

Important Clarification

  • Under Section 75(4) of the GST Act, the date of personal hearing must be fixed after — and never on or before — the date fixed for filing reply to the show cause notice; failure to do so vitiates the resultant adjudication order.
  • The date on which the order under Section 73(9)/74(9) is passed must be commensurate with the date of personal hearing actually granted, per the departmental Office Memo relied upon by the Court.

Sections Involved

  • Section 73, U.P. Goods and Services Tax Act, 2017 — determination of tax not paid, other than by reason of fraud.
  • Section 75(4), U.P. GST Act, 2017 — mandatory opportunity of personal hearing.

Decision – In Favour of

In favour of the Assessee — both the original adjudication order and the appellate rejection were quashed, and the matter remanded for fresh adjudication after proper hearing.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: Writ Tax No. 1131 of 2025
Coram: Hon'ble Jaspreet Singh, J.
Date of Order: 17.10.2025

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