Facts of the Case

M/s Warmmax India challenged an order dated 27.04.2024 passed by the Commissioner of SGST under Section 73 of the GST Act, seeking a writ of certiorari quashing it and a direction restraining recovery until the petitioner was afforded a proper personal hearing. The petitioner's counsel submitted that no opportunity of hearing was provided before the order was passed, contrary to sub-section (4) of Section 75, which mandates a personal hearing wherever an authority contemplates a decision adverse to the assessee.

Issues Involved

  1. Whether an order passed under Section 73 can be sustained where the department is unable to show that any opportunity of personal hearing was granted as mandated by Section 75(4).

Petitioner's Arguments

  • No opportunity of hearing was provided to the petitioner before the adverse order was passed, in violation of the principle of natural justice.
  • Section 75(4) mandates that an opportunity of personal hearing be given wherever an authority contemplates an order adverse to the assessee's interest.

Respondent's Arguments

  • The learned Standing Counsel for the Revenue was not in a position to show that any opportunity of hearing had in fact been granted to the petitioner.

Court Order / Findings

  • In the absence of any material showing a personal hearing was granted, the Court found the petitioner's contention sustainable.
  • The impugned order dated 27.04.2024 was quashed, with liberty to the department to pass a fresh order after providing proper opportunity of hearing.

Important Clarification

  • Section 75(4)'s mandate of a personal hearing before any adverse order is treated as a mandatory, non-negotiable procedural safeguard; where the department itself cannot demonstrate compliance, courts will quash the order without going into the merits of the underlying tax demand.

Sections Involved

  • Section 73 of the GST Act, 2017 — determination of tax not paid/short paid for reasons other than fraud.
  • Section 75(4) of the CGST Act, 2017 — mandatory opportunity of personal hearing before any adverse decision.

Decision – In Favour of

In favour of the Assessee — the impugned order was quashed with liberty to the department to pass a fresh order after granting a proper personal hearing.

Case Details

Court: High Court of Uttarakhand at Nainital — Case No.: Writ Petition (M/B) No. 984 of 2025 — Neutral Citation: 2026:UHC:6997-DB — Coram: Hon'ble Chief Justice Manoj Kumar Gupta and Justice Subhash Upadhyay — Date of Order: 7 August 2026.

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