Demarte Knit Fab vs. Union Of INDIA And Others
Facts
The petitioner, Demarte Knit Fab, is challenging an adjudication order dated 15.03.2024 passed under Section 73 of the Central Goods and Services Tax Act, 2017, pertaining to the financial year 2018-19. The petitioner contends that no opportunity of personal hearing was afforded to them before the order was passed. This, they argue, violates the principles of natural justice and Section 75(4) of the CGST Act, 2017, which mandates providing an opportunity of hearing to the assessee before adverse action. The respondents are the Union of India and others. The procedural history involves the passing of the impugned adjudication order and a subsequent appellate order dated 18.06.2025.
Held
The Court held that the adjudication order dated 15.03.2024 and the appellate order dated 18.06.2025 were passed in violation of the principles of natural justice and 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 respondents' counsel had not been able to distinguish the present case from the precedent set in Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others. Consequently, the impugned orders were set aside. The Court granted liberty to the respondents to proceed afresh against the petitioner in accordance with law, providing the necessary opportunity of hearing. The ratio decidendi is that a statutory mandate for personal hearing, as enshrined in Section 75(4) of the CGST Act, must be adhered to, and failure to do so vitiates the order.
Key Issues
1. Whether the adjudication order dated 15.03.2024, passed without affording the petitioner an opportunity of personal hearing, violates the principles of natural justice and Section 75(4) of the Central Goods and Services Tax Act, 2017? Petitioner's Arguments: The petitioner argues that the failure to provide a personal hearing contravenes the principles of natural justice and the specific mandate of Section 75(4) of the CGST Act, 2017. They rely on the judgment in Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others (CWP-33977-2023 decided on 24.03.2026) as being directly applicable to their case. Respondents' Arguments: The respondents' counsel argued that the applicability of the Kemexel Ecommerce Pvt. Ltd. case to the petitioner's case could not be distinguished.
Sections Cited
Section 73, Section 75(4)
AI-generated summary — verify with the full judgment below
IN THE
Demarte Knit F Union of India CORAM : H
H
Present : M
fo
M
fo
DEEPAK SIB
It adjudication o Goods and Ser no opportunity only violates t 75(4) of the Ce respondent-aut before any adv
In covered in its CWP-33977-2 others’.
Sr. No.165
E HIGH COURT OF PUNJAB CHANDIGARH
CWP- 140 Date of De
Fab
… Versus a and others
… HON’BLE MR. JUSTICE DEEPA HON’BLE MS. JUSTICE LAPITA Mr. Mukul Singla, Advocate or the petitioner. Mr. Gurinder Jeet Singh, Sr. Pane or the respondents. *** BAL, J. (Oral)
t is not disputed that prior to rder dated 15.03.2024 passed un rvices Tax Act, 2017, pertaining y of personal hearing was afforde the principles of natural justice entral Goods and Services Tax A thorities to provide opportunity verse action against the assessee. n the light of the above, the favour by a recent judgment ren 2025 ‘Kemexel Ecommerce Pvt. B AND HARYANA AT H 006-2026 ecision :06.05.2026
…Petitioner
…Respondents AK SIBAL A BANERJI
el Counsel
o passing of the impugned nder Section 73 of the Punjab to the financial year 2018-19,
The judgment continues below.
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