A V Alloys vs. Union Of INDIA And Others
Facts
The petitioner, A V Alloys, challenged an adjudication order dated May 26, 2021, passed under Section 74 of the Central Goods and Services Tax Act, 2017, for the assessment year 2018-19. The petitioner contended that no personal hearing was provided before the adjudication order was passed. The respondents are the Union of India and others. The petitioner also challenged an order dated January 29, 2024, which set aside their statutory appeal against the adjudication order. The court noted that the admitted fact was the absence of a personal hearing for the petitioner prior to the adjudication order.
Held
The Court held that the admitted fact of the petitioner not being afforded an opportunity of a personal hearing before the passing of the adjudication order dated May 26, 2021, under Section 74 of the Central Goods and Services Tax Act, 2017, for the assessment year 2018-19, fully covered the petitioner's case. The Court found that the situation was squarely covered by its own previous judgment in CWP-33977-2025 – Kemexel Ecommerce Pvt. Ltd. vs. State of Punjab and others. Consequently, the impugned adjudication order dated May 26, 2021, and the subsequent order dated January 29, 2024, which set aside the petitioner's statutory appeal, were quashed. The Court granted liberty to the respondents to proceed afresh against the petitioner in accordance with the law. The ratio decidendi is that a failure to provide a personal hearing before passing an adjudication order under Section 74 of the CGST Act renders the order invalid.
Key Issues
1. Whether the adjudication order dated May 26, 2021, passed under Section 74 of the Central Goods and Services Tax Act, 2017, is vitiated due to the denial of a personal hearing to the petitioner for the assessment year 2018-19? 2. Whether the order dated January 29, 2024, setting aside the petitioner's statutory appeal, is sustainable in light of the alleged denial of a personal hearing? Petitioner's arguments: The petitioner argued that the impugned adjudication order was passed without affording them an opportunity of a personal hearing, which is a mandatory procedural requirement. They relied on a previous judgment of the High Court in CWP-33977-2025 – Kemexel Ecommerce Pvt. Ltd. vs. State of Punjab and others. Revenue's arguments: The judgment does not record any specific arguments made by the respondents (Union of India and others).
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
CWP-13129-2026 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Sr. No.170 CWP-13129-2026 Date of decision: 30.04.2026 A V Alloys ....Petitioner Versus Union of India and others ....Respondents CORAM: HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present: Mr. Mohit Bassi, Advocate for the petitioner. Mr. Saurabh Kapoor, Addl. A.G., Punjab. * * * DEEPAK SIBAL, J. (Oral)
It is not disputed that before passing the impugned adjudication order dated 26.05.2021, under Section 74 of the Central Goods and Services Tax Act, 2017, pertaining to the assessment year 2018-19, the petitioner was not afforded any opportunity of personal hearing.
In the light of the above admitted facts, the case of the petitioner is fully covered by a recent judgment of ours dated 24.03.2026 passed in CWP-33977-2025 – (Annexure P-2) and the order dated 29.01.2024 (Annexure P-4) through which the statutory appeal filed by the petitioner to challenge therein the adjudication order dated 26.05.2021 are set aside. However, liberty is granted
The judgment continues below.
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