Facts of the Case

The petitioner, Iti Ltd., a Public Sector Undertaking at Raebareli, through its Finance Manager, challenged an assessment order passed under Section 75(4) of the U.P. GST Act, 2017. After hearing the matter at length, it emerged as an accepted position, on instructions received by the learned Additional Chief Standing Counsel, that personal hearing had not been given as mandated under Section 75(4).

Issues Involved

  1. Whether the assessment order, passed without granting personal hearing under Section 75(4) of the U.P. GST Act, 2017, could be sustained.

Petitioner's Arguments

  • The impugned assessment order was liable to be quashed as it was passed without affording the petitioner an opportunity of personal hearing mandated by Section 75(4) of the U.P. GST Act, 2017.

Respondent's Arguments

  • The learned Additional Chief Standing Counsel, on instructions, accepted the position that personal hearing had not been given under Section 75(4).

Court Order / Findings

  • In view of this accepted position, the Court quashed the impugned assessment order and granted liberty to the Department to proceed afresh as per law, disposing of the petition accordingly.

Important Clarification

  • Once the Department itself accepts, on instructions, that the mandatory personal hearing under Section 75(4) of the GST Act was not granted before passing an assessment order, the Allahabad High Court quashes the order as a matter of course, without needing to examine the merits of the underlying tax demand, and grants liberty to proceed afresh.
  • The requirement of personal hearing under Section 75(4) applies uniformly, irrespective of whether the assessee is a private trader or a Public Sector Undertaking.

Sections Involved

  • Section 75(4) of the U.P. Goods and Services Tax Act, 2017 — mandates an opportunity of hearing where a request is received in writing or an adverse decision is contemplated.

Decision – In Favour of

Allowed in favour of the Assessee; the assessment order was quashed with liberty to the Department to proceed afresh in accordance with law.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: Writ Tax No. 53 of 2023
Neutral Citation: 2025:AHC-LKO:25278-DB
Coram: Hon'ble Rajan Roy, J. and Hon'ble Om Prakash Shukla, J.
Date of Order: 1st May, 2025

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