New Arora And Company vs. State Of Punjab

CWP/11871/2026HC Punjab and HaryanaGSTCNR PHHC01065478202621 April 2026Bench: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI2 pages
AI SummaryRemanded

Facts

The petitioner, New Arora and Company, challenged two orders: an adjudication order dated 30.04.2024 and an appellate order dated 19.11.2025 that dismissed its appeal against the adjudication order. The petitioner contended that the adjudication order was passed without affording it an opportunity of hearing, violating principles of natural justice and Section 75(4) of the Central Goods and Services Tax Act, 2017. The State counsel conceded that no personal hearing was granted to the petitioner prior to the adjudication order. The Court noted that the amount in dispute was not specified.

Held

The Court held that the adjudication order dated 30.04.2024 was in violation of the principles of natural justice and Section 75(4) of the Central Goods and Services Tax Act, 2017. Section 75(4) statutorily mandates the State to offer an opportunity of personal hearing to an assessee before any adverse action is contemplated. The Court's view was consistent with its prior decision in CWP No.33977 of 2025 – Kemexel Ecommerce Pvt. Ltd. Vs. State of Punjab and others. Consequently, the Court set aside both the adjudication order and the appellate order. However, liberty was granted to the respondent-State to proceed afresh against the petitioner, provided they followed the provisions of law, including Section 75(4) of the Act, by granting an opportunity of personal hearing. No specific amount was in dispute or mentioned.

Key Issues

1. Whether the adjudication order dated 30.04.2024 is liable to be set aside for violation of the principles of natural justice and Section 75(4) of the Central Goods and Services Tax Act, 2017, by not providing an opportunity of hearing to the petitioner? Petitioner's contention: The petitioner argued that the adjudication order was invalid because it was passed without granting a personal hearing, which contravenes the principles of natural justice and the statutory mandate of Section 75(4) of the Act. Revenue/State's contention: The State counsel admitted that no opportunity of personal hearing was granted to the petitioner before the adjudication order was passed.

Sections Cited

Section 75(4)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

( Sr. No. 153 )

CWP No. 11871 of 2026

Date of decision: 21.04.2026

New Arora and company .....Petitioner

Versus State of Punjab and others .....Respondents

CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL

HON'BLE MS. JUSTICE LAPITA BANERJI

Present : Mr. Amrinder Singh, Advocate for the petitioner.

Mr. R.S. Pandher, Addl. A. G., Punjab.

* * *

DEEPAK SIBAL, J. (Oral) (1)

Through the instant petition challenge is made to the adjudication order dated 30.04.2024 (Annexure P-2) as also to the order dated 19.11.2025 (Annexure P-1) passed by the appellate authority through which the petitioner’s appeal, filed by it to challenge therein the adjudication order dated 30.04.2024, was dismissed. (2)

Learned counsel for the petitioner submits that the afore referred impugned orders are liable to be set aside solely for the reason that prior to the passing of the adjudication order dated 30.04.2024 (Annexure P-2) no opportunity of hearing was even offered to the petitioner which not only violates the principles of natural ju

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