M/S Ikon Lubes (INDIA) Private LTD. vs. State Of U.P. And Another
Held
The Court held that the impugned order dated 12.7.2023, passed by respondent No. 2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, was indeed passed in violation of the principles of natural justice. The respondent's counsel's admission that no opportunity of hearing was granted to the petitioner was crucial. The Court reasoned that a fair hearing is a fundamental right, and its denial vitiates any subsequent order. Therefore, the Court quashed and set aside the impugned order. The Court directed the authority to grant an opportunity of hearing to the petitioner and thereafter decide the matter afresh within a period of four weeks from the date of the order. The ratio decidendi is that an order passed without affording a proper opportunity of hearing is a nullity and liable to be set aside.
Facts
The petitioner, M/s Ikon Lubes (India) Private Ltd., filed a writ petition before the Allahabad High Court challenging an order dated 12.7.2023 passed by respondent No. 2. The impugned order was issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner contended that the order was passed in violation of the principles of natural justice as no opportunity of hearing was provided to them. The respondent, State of U.P. and Another, through their counsel, fairly conceded that it appeared no opportunity of hearing was granted to the petitioner.
Key Issues
1. Whether the order dated 12.7.2023 passed by respondent No. 2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, is liable to be quashed for violation of the principles of natural justice, specifically the right to a hearing? Petitioner's Contention: The petitioner argued that the impugned order was passed without granting them an adequate opportunity of hearing, thereby violating the fundamental principles of natural justice. They relied on the general principles of natural justice, which mandate a fair hearing before any adverse order is passed against a party. Respondent's Contention: The respondent, through the Standing Counsel, conceded that it appeared no opportunity of hearing was granted to the petitioner. No specific statutory provisions, circulars, or precedents were cited by either party in their arguments.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC:228002-DB Court No. - 3 Case :- WRIT TAX No. - 1360 of 2023 Petitioner :- M/S Ikon Lubes (India) Private Ltd. Respondent :- State of U.P. and Another Counsel for Petitioner :- Aditya Pandey Counsel for Respondent :- C.S.C. Hon'ble Siddhartha Varma,J. Hon'ble Shekhar B. Saraf,J.
Heard Sri Aditya Pandey, learned counsel for the petitioner and Sri Ankur Agarwal, learned Standing Counsel for the State.
Present writ petition has been filed under Article 226 of the Constitution of India assailing the order dated 12.7.2023 passed by respondent No.2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. 3. Counsel on behalf of the petitioner submits that no opportunity of hearing was granted to the petitioner and the order impugned has, accordingly, encroached violation of principles of natural justice.
Counsel for the respondents fairly submits that it does appear that no opportunity of hearing was granted to the petitioner.
In light of the submissions made, the impugned order dated 12.7.2023 is quashed and set aside with a direction upon the authority to grant opportunity of hearing to the petitioner and thereafter dec
The judgment continues below.
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