Foreigners Auto Zone vs. State Of Punjab And Others

Facts

The petitioner, Foreigners Auto Zone, challenged an adjudication order dated 06.05.2024, passed by the State of Punjab and others under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner contended that they were not afforded an opportunity of personal hearing before the impugned order was passed. The State counsel was unable to distinguish the present case from a previous judgment of the High Court in CWP No.33977 of 2025, Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others, which dealt with similar circumstances. The dispute pertains to the validity of the adjudication order and a subsequent rectification order dated 04.05.2026.

Held

The Court held that the impugned adjudication order dated 06.05.2024 was violative of the principles of natural justice and contravened Section 75(4) of the Central Goods and Services Tax Act, 2017, as the petitioner was not afforded an opportunity of personal hearing. The Court found that the petitioner's case was covered by its previous judgment in CWP No.33977 of 2025 – Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others. The learned State counsel could not distinguish the applicability of this precedent. Consequently, the impugned adjudication order and the rectification order dated 04.05.2026 were quashed. The Court granted liberty to the State to proceed afresh against the petitioner in accordance with law. The ratio decidendi is that an adjudication order passed without providing a personal hearing to the assessee, in violation of Section 75(4) of the CGST Act, 2017, is unsustainable and liable to be quashed.

Key Issues

1. Whether the adjudication order dated 06.05.2024, passed under Section 73 of the Central Goods and Services Tax Act, 2017, is violative of the principles of natural justice and Section 75(4) of the Act for not affording the petitioner an opportunity of personal hearing? Petitioner's contention: The petitioner argued that the impugned adjudication order was passed without providing them with a personal hearing, thus violating the principles of natural justice and Section 75(4) of the CGST Act, 2017. They relied on the judgment in CWP No.33977 of 2025 – Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others. Revenue's contention: The Revenue (State of Punjab and others) did not present any arguments to distinguish the applicability of the Kemexel Ecommerce Pvt. Ltd. case to the petitioner's case.