M/S Moheed Khan Contractor vs. The State Of U.P. And Another
Held
The Court held that the impugned order dated 17.08.2022 was passed without affording the petitioner an opportunity of personal hearing, which is a violation of the principles of natural justice. The Court noted that no date for hearing was mentioned in the order. Consequently, the Court set aside the impugned order. The Court directed the petitioner to file their reply to the show cause notice within two weeks from the date of the order and to appear before Respondent No. 2 (the authority) on 11.12.2023. On that date, the authority is to hear the petitioner and pass an appropriate order strictly in accordance with law, without expressing any opinion on the merits of the case. The Court explicitly stated that it had not expressed any opinion on the merits of the case.
Facts
The petitioner, M/s Moheed Khan Contractor, filed a writ petition before the Allahabad High Court challenging an order dated 17.08.2022 passed under Section 74(9) of the CGST Act, 2017. The impugned order pertained to the tax period of March 2019 (2018-19). The petitioner's grievance was that the order was passed without affording any opportunity of hearing and without mentioning the date for a personal hearing. The petitioner sought to have the order quashed and a fresh order passed after providing an opportunity to be heard. The revenue contended that despite the lack of a personal hearing, the petitioner had not filed a reply to the show cause notice, and therefore, the impugned order should not be quashed.
Key Issues
1. Whether the impugned order dated 17.08.2022, passed under Section 74(9) of the CGST Act, 2017, is liable to be quashed for violation of principles of natural justice, specifically for not affording an opportunity of hearing to the petitioner? The petitioner argued that the order was passed in violation of the principles of natural justice as no opportunity of hearing was provided, and no date for personal hearing was mentioned. They sought quashing of the order and a direction for a fresh adjudication after providing a hearing. The revenue contended that the petitioner had failed to file a reply to the show cause notice, and therefore, the absence of a personal hearing should not lead to the quashing of the order. They did not rely on any specific provision, circular, or precedent but argued based on the petitioner's inaction.
Sections Cited
Section 74(9)
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC:213643-DB Chief Justice's Court Case :- WRIT TAX No. - 1285 of 2023 Petitioner :- M/S Moheed Khan Contractor Respondent :- The State Of U.P. And Another Counsel for Petitioner :- Vishwjit Counsel for Respondent :- C.S.C.
Hon'ble Pritinker Diwaker,Chief Justice Hon'ble Ashutosh Srivastava,J.
Grievance of the petitioner is that the impugned order dated 17.08.2022 under Section 74 (09) of CGST Act, 2017 has been passed for Tax period of March 2019 (2018-19), without affording any opportunity of hearing to the petitioner and even without mentioning the date of granting personal hearing.
Learned counsel for the petitioner submits that purpose of filing this petition would be served if order impugned is quashed with a direction to the authority concerned to pass fresh order after giving opportunity of hearing to the petitioner.
Learned counsel appearing for the revenue submits that even if the opportunity of personal hearing has not been given to the petitioner, he could have filed reply to the show cause notice, which he has not done, therefore, the order impugned may not be quashed. A bare perusal of the impugned order reflects that no date was mentio
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