Facts of the Case

The petitioner, M/S Shri Hari Constructions, through its proprietor Vishnu Dutta Mishra, challenged an order dated 28.08.2024 passed under Section 73 of the GST Act, and a further order dated 16.07.2025 dismissing the petitioner's appeal against it as barred by limitation. 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 order was vitiated for want of a genuine opportunity of personal hearing.
  2. Whether the appellate order dismissing the appeal as time-barred could survive once the underlying assessment order itself was found unsustainable.

Petitioner's Arguments

  • No opportunity of hearing was granted while passing the order under Section 73 of the GST Act.
  • 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, decided 04.03.2024).

Respondent's Arguments

  • Learned Standing Counsel, on instructions, candidly stated that in the notice, the date fixed for personal hearing was prior in point of time to the date fixed for filing the reply — effectively conceding the sequencing defect.

Court Order / Findings

  • On the sole ground that the hearing date preceded the reply date, and following Mahaveer Trading Company, the Court allowed the petition and quashed both the order dated 28.08.2024 and the appellate order dated 16.07.2025.
  • The matter was remanded to the assessing authority to pass a fresh order after giving the petitioner a genuine opportunity of hearing.

Important Clarification

  • A Section 73 notice that fixes the personal-hearing date before the date by which the reply is due defeats the very purpose of the hearing and is treated as effective denial of an opportunity of hearing, warranting the order's quashing regardless of the appellate authority's separate limitation-based dismissal.
  • Once the foundational adjudication order is found unsustainable for want of hearing, the linked appellate rejection on limitation cannot independently survive; both stand quashed together and the matter goes back for a fresh, procedurally proper adjudication.

Sections Involved

  • Section 73 of the Goods and Services Tax Act, 2017 — determination of tax not paid, short paid or of ITC wrongly availed, for reasons other than fraud.
  • Section 107 of the Goods and Services Tax Act, 2017 (appellate provision, invoked in the dismissed appeal) — prescribes the limitation for filing appeals against orders under the Act.

Decision – In Favour of

Allowed in favour of the Assessee; both the assessment order and the appellate rejection were quashed, with the matter remanded for fresh adjudication after a proper hearing.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: Writ Tax No. 721 of 2025
Neutral Citation: 2025:AHC-LKO:44291
Coram: Hon'ble Pankaj Bhatia, J.
Date of Order: 31st July, 2025

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