Facts of the Case

M/s Ravi Enterprises challenged an order dated 18.04.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, along with the order dated 14.10.2025 dismissing its appeal as time-barred. In the original show-cause notice, the date of personal hearing and the date fixed for reply were the same; however, in the reminder notice, a discrepancy arose where the hearing date was fixed prior to the date fixed for reply — meaning the petitioner could, on paper, be heard before it was even required to respond.

Issues Involved

  1. Whether an order passed under Section 73 can survive where the reminder notice sets the personal hearing date earlier than the date fixed for filing the reply, contrary to Section 75(4).

Petitioner's Arguments

  • No genuine opportunity of hearing was granted; the reminder notice contained a discrepancy where the hearing date preceded the reply date.
  • Relied heavily on the Division Bench ruling in Mahaveer Trading Company v. Deputy Commissioner, State Tax, which laid down that opportunity of personal hearing under Section 75(4) is mandatory and cannot be diluted merely because the substantive law has changed.

Respondent's Arguments

  • The Standing Counsel, on instructions, did not dispute that there was a discrepancy in the reminder notice, where the date of personal hearing was shown as prior to the date for filing reply.

Court Order / Findings

  • The Court extensively reproduced Mahaveer Trading Company, which had noted the Commissioner, Commercial Tax, Uttar Pradesh's Office Memo No. 1406 dated 12.11.2024, issued after similar occurrences were noticed across the State, directing field formations that: the date of reply must always precede the date of personal hearing; hearing dates and times must not be left blank or marked 'N.A.'; and the date of the final order must match the date of personal hearing.
  • Applying this dictum, the Court held the impugned orders could not be sustained and quashed both the original order dated 18.04.2024 and the appellate dismissal dated 14.10.2025.
  • The matter was remanded to the assessing authority to pass a fresh order after granting a proper opportunity of hearing.

Important Clarification

  • The UP Commercial Tax Department's own internal Office Memo No. 1406 dated 12.11.2024 is now judicially recognised as recording a statewide, systemic pattern of hearing-date sequencing errors in Section 73/74 proceedings, and courts are treating any deviation from its prescribed sequence (reply date, then hearing date, then order on the hearing date) as a fatal natural-justice defect.

Sections Involved

  • Section 73 of the UPGST Act, 2017 — determination of tax not paid/short paid.
  • Section 75(4) of the CGST Act, 2017 — mandatory opportunity of personal hearing before an adverse order.

Decision – In Favour of

In favour of the Assessee — both impugned orders were quashed and the matter remanded for a fresh hearing sequenced in accordance with law.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench — Case No.: Writ Tax No. 1213 of 2025 — Coram: Hon'ble Justice Jaspreet Singh — Date of Order: 30 October 2025.

Link to Download the Order

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