M/S Kgn Scrap Merchant Thru. Proprietor Mohammad Shadab Hussain vs. State Of U.P. Thru. Prin. Secy. State Tax Lko. And 2 Others

Heard learned counsel for the petitioner and learned Additional Chief Standing Counsel for the State.

By means of the instant petition, the petitioner has assailed the order dated 16.01.2025 passed under Section 74 of the U.P. GST Act as well as the appellate order dated 20.09.2025, whereby the appeal was dismissed as being beyond limitation.

The submission of the learned counsel for the petitioner is that the impugned order has been passed without affording opportunity of hearing as contemplated in Section 75(4) of the GST Act, and thus the impugned orders being patently in breach of principles of natural justice, is not sustainable and deserves to be quashed.

It has also been urged that the appeal preferred by the petitioner was also non-suited purely on the ground of delay. The submission is that once the initial order was bad and the appeal has also been rejected only on the ground that the authorities does not have the power to condone the delay. In such circumstances, there is a clear violation of the principles of natural justice. The petitioner has relied upon decisions of the Division Bench of this Court in Bharat Mint and Allied Chemicals v. Commissioner Commercial Tax & Ors, 2022 (4) ADJ 75 as well as Writ Tax No.303 of 2024 [Mahaveer Trading Company vs. Deputy Versus Counsel for Petitioner(s) : Himanshu Nag, Shubham Chaurasiya Counsel for Respondent(s) : C.S.C. M/S Kgn Scrap Merchant Thru. Proprietor Mohammad Shadab Hussain .....Petitioner(s) State Of U.P. Thru. Prin. Secy. State Tax Lko. And 2 Others .....Respondent(s)

Learned Additional Chief Standing Counsel for the State, on the basis of the instructions, states that it cannot be disputed that the petitioner was not granted any opportunity and his appeal was also dismissed on the ground of delay and that the dictum of the Division Bench of this Court in Bharat Mint (supra) and Mahaveer Trading Company (supra) are applicable.

Considering the fact that it is mandatory to grant personal hearing under Section 75(4) of GST Act and no specific date for hearing was fixed as is evident from the impugned order, and adopting the reasoning as contained in the case of Bharat Mint (supra) and Mahaveer Trading Company (supra), present petition is allowed.

Impugned orders dated 16.01.2025 & 20.09.2025 cannot be sustained and are quashed.

Matter is remanded back to the assessing authority to pass fresh order after giving an opportunity of hearing to the petitioner, in accordance with law. November 27, 2025 Rakesh/- WTAX No. 1361 of 2025 2 (Jaspreet Singh,J.) RAKESH PRAJAPAT High Court of Judicature at Allahabad, Lucknow Bench