M/S Victoria Hardware And Paints Thru. Prop. Osama Ateeq Siddiqui vs. State Of U.P. Thru. Prin. Secy. Deptt. Of State Tax Lko. And 2 Others
Held
The Court held that the principles of natural justice were violated because the date for submitting a reply to the show cause notice and the date for personal hearing were the same (07.02.2025). This practice, as highlighted in the cited case of Mahaveer Trading Company and the Office Memo No. 1406 dated 12.11.2024 issued by the Commissioner, Commercial Tax, Uttar Pradesh, is improper and renders the proceedings void. The Court found that the authorities should have issued a fresh show cause notice in accordance with the law when the initial notice was found to be flawed. Even though the writ petition was filed after the period of limitation for appeal, the Court decided to intervene due to the exceptional circumstances of a gross violation of the principles of natural justice. The ex-parte order dated 10.02.2025 was quashed and set aside. The Department was granted liberty to issue a fresh show cause notice and proceed in accordance with law. The issue of whether the appeal authority has the power to remand proceedings was noted as not being applicable in this context, as the appeal authority does not have such authority.
Facts
The writ petitioner, M/S Victoria Hardware And Paints Thru. Prop. Osama Ateeq Siddiqui, challenged an order dated 10.02.2025 passed under Section 73 of the CGST/SGST Act by the Assistant Commissioner, State Tax, Sector-08 Lucknow, and a subsequent Form DRC-13 dated 21.06.2025 issued by the Deputy Commissioner, State Tax, Sector-3, Lakhimpur Kheri. The petitioner argued that the initial show cause notice and subsequent proceedings were improper. Specifically, the date for submitting a reply and the date for personal hearing were both listed as 07.02.2025, violating principles of natural justice. The petitioner relied on a coordinate bench judgment in Mahaveer Trading Company vs. Deputy Commissioner State Tax.
Key Issues
1. Whether the impugned order dated 10.02.2025, passed under Section 73 of the CGST/SGST Act, is bad in law due to a violation of the principles of natural justice, specifically concerning the opportunity for personal hearing. (Petitioner's contention: Yes, the date for reply and personal hearing being the same is improper and renders the proceedings void. Revenue's contention: Not recorded in the judgment.) 2. Whether this Court should intervene in this writ petition, despite the availability of an alternative remedy and the petition being filed beyond the statutory limitation period for appeal, in cases of gross violation of natural justice. (Petitioner's contention: Yes, due to the fundamental violation of natural justice. Revenue's contention: Not recorded in the judgment.)
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1607 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE MANJIVE SHUKLA, J.
Heard counsel appearing on behalf of the parties.
This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioner has prayed for the following reliefs:- "i) Issue a writ, order or direction in the nature of Certiorari to quash the impugned order dated 10.02.2025 passed u/s73 of the CGST/SGST Act by opp. Party No2 i.e. Assistant Commissioner, State Tax, Sector-08 Lucknow contained as ANNEXURE NO.1 to this writ petition. ii. Issue a writ, order or direction in the nature of CERTIORARI to quash the impugned FORM-DRC 13 dt 21.06.2025 issued by O.P. No.-3 Deputy Commissioner, State Tax, Sector-3, Lakhimpur Kheri contained as ANNEXURE NO.2 to this writ petition."
Counsel on behalf of the petitioner relies on a coordinate Bench judgment 8, 9, 10, 11 and 12 of the said judgment are delineated below:- "
Thus, it is established on record that on all three da
The judgment continues below.
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