M/S New Jai Durga Enterprises vs. State Of U.P. And Another
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The petitioner, M/s New Jai Durga Enterprises, filed a writ petition challenging orders dated 17.07.2021 and 24.08.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017. These orders pertained to the assessment period January 2020 and April 2019-March 2020. The petitioner contended that a show cause notice for January 2020 indicated 'NA' for the personal hearing date. Subsequently, another notice for April 2019-March 2020 was issued with a reply filing deadline of 16.06.2025 and a personal hearing date of 10.06.2024, which was before the reply deadline. Reminders also showed personal hearing dates prior to the reply filing deadline. The petitioner filed a reply on 30.07.2024, but no personal hearing was granted before the impugned order dated 24.08.2024 was passed, violating principles of natural justice and Section 75(4) of the Act.
Held
The Court held that the action of the authorities clearly reflected a violation of the principles of natural justice and the provisions of Section 75(4) of the U.P. Goods and Services Tax Act, 2017. A perusal of the show cause notice and reminders revealed that the authority, without proper application of mind, had fixed the date of personal hearing prior to the date of filing of the reply. Furthermore, even after the reply was filed, no date was fixed for granting a personal hearing to the petitioner. The Court found the respondent's argument that the petitioner could have appeared for a hearing despite the incorrect dates unconvincing, as no attempt was made by the petitioner to do so. Consequently, the petition was allowed, and the impugned orders dated 24.08.2024 and 17.07.2021 were quashed and set aside. The matter was remanded to the authority to fix a fresh date for personal hearing, hear the petitioner, and pass appropriate orders in accordance with the law.
Key Issues
1. Whether the impugned orders dated 17.07.2021 and 24.08.2024, passed under Section 73 of the U.P. Goods and Services Tax Act, 2017, are liable to be quashed on the ground of violation of principles of natural justice and Section 75(4) of the Act due to incorrect fixation of personal hearing dates and failure to provide an opportunity for hearing after the reply was filed. Petitioner's Arguments: The petitioner argued that the show cause notice for January 2020 had 'NA' for the personal hearing date. For the period April 2019-March 2020, the notice dated 17.05.2024 fixed the personal hearing date (10.06.2024) before the reply filing deadline (16.06.2025). Subsequent reminders also indicated personal hearing dates prior to the reply deadline. Despite filing a reply on 30.07.2024, no personal hearing was granted before the final order dated 24.08.2024 was passed, thus violating Section 75(4) of the Act and principles of natural justice. Respondent's Arguments: The respondent contended that despite the incorrect indication of dates in the show cause notice and reminders, there was sufficient time between the reply filing date and the final order, during which the petitioner could have appeared for a personal hearing. However, no such attempt was made by the petitioner.
Sections Cited
Section 73, Section 75(4)
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC:69697-DB Chief Justice's Court Case :- WRIT TAX No. - 1849 of 2025 Petitioner :- M/s New Jai Durga Enterprises Respondent :- State of U.P. and another Counsel for Petitioner :- Mr. Rishi Raj Kapoor Counsel for Respondent :- C.S.C. Mr. Ankur Agarwal (S.C.) Hon'ble Arun Bhansali,Chief Justice Hon'ble Kshitij Shailendra,J.
This writ petition has been filed aggrieved of orders dated 17.07.2021 and 24.08.2024 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017 (for short 'the Act') pertaining to the assessment period January 2020 and April 2019-March 2020. 2. Submissions have been made that a show cause notice was issued to the petitioner under Section 73 of the Act for the period January 2020, wherein in the Column pertaining to the date of personal hearing, 'NA' was indicated. Subsequent thereto, including the period of January 2020, another notice dated 17.05.2024 for the period April 2019-March 2020 was issued to the petitioner, wherein the date of filing reply was indicated as 16.06.2025 and date of personal hearing was fixed as 10.06.2024 i.e. before the last date of filing the reply. Whereafter in the reminders issued to the petitioner on 27.06.2024 and 22.07.2024, again the dates of personal hearing were indicated prior to the last date of filing of the reply. The petitioner filed his reply on 30.07.2024, however though the order impugned was passed on 24.08.2024, pertaining to the entire year no opportunity of personal hearing was provided to the petitioner, which is in violation of provisions of Section 75(4) of the Act and, therefore, the orders deserve to be quashed and set aside.
Learned counsel for the respondents attempted to make submissions that irrespective of the wrong indication of dates in the show cause notice and the reminders, there was sufficient gap between the date of filing of reply and passing of the final order and the petitioner could have appeared before the authority for personal hearing. No attempt in this regard appears to have been made and, therefore, the petition deserves dismissal.
We have considered the submissions made by counsel for the parties and have perused the material available on record.
A perusal of the show cause notice as well as reminders clearly reveals that the authority without application of mind, has fixed date of personal hearing prior to the date of filing of reply and even after the reply was filed, no date has been fixed for grant of personal hearing. The action of the authorities, clearly reflects violation of principles of natural justice and provisions of Section 75(4) of the Act.
Consequently, the petition is allowed and the orders impugned dated 24.08.2024 and 17.07.2021 are quashed and set aide.
The matter is remanded to the authority, who would fix a date of personal hearing and after hearing the petitioner, pass appropriate orders in accordance with law. Order Date :- 2.5.2025 RK/Jyotsana (Kshitij Shailendra, J) (Arun Bhansali, CJ) RAJESH KUMAR High Court of Judicature at Allahabad
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.