M/S P.S.Handicrafts And Moti Center vs. State Of U.P. And Another
Facts
The petitioner, M/s P.S.Handicrafts and Moti Center, filed a writ petition before the Allahabad High Court. The petitioner's grievance was that a notice dated January 7, 2023, issued under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, did not inform them of their right to a personal hearing. The column for personal hearing in the notice was marked 'NA'. The petitioner contended that proceeding without a personal hearing would violate the principles of natural justice. The respondents, the State of U.P. and another authority, submitted that a personal hearing would be granted if the petitioner requested it after filing their reply.
Held
The Court disposed of the writ petition with an observation. It held that if the petitioner files a reply to the show cause notice within two weeks from the date of the order, the Competent Authority shall grant the petitioner an opportunity of personal hearing before passing any final order. The Court's reasoning implicitly acknowledged the petitioner's contention regarding the principles of natural justice by directing that a personal hearing be afforded. The ratio of the decision is that a taxpayer must be given an opportunity for personal hearing before a final order is passed under Section 73(1) of the UP GST Act, and failure to explicitly inform them of this right in the show cause notice necessitates such an opportunity upon request after filing a reply. No issue was expressly left undecided.
Key Issues
1. Whether the notice issued under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, is violative of the principles of natural justice for not explicitly informing the petitioner of their right to a personal hearing and marking the personal hearing column as 'NA'. Petitioner's contention: The petitioner argued that the absence of a clear indication of the right to personal hearing and the marking of the relevant column as 'NA' in the show cause notice constitutes a violation of the principles of natural justice, as it deprives them of an opportunity to be heard before any final order is passed. Respondents' contention: The respondents contended that a personal hearing would be granted to the petitioner if they requested it after filing their reply to the show cause notice.
Sections Cited
Section 73(1)
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Cause title — parties, addresses and appearances
The only grievance raised by learned counsel for the petitioner is that in the notice dated January 7, 2023 issued to the petitioner under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, the petitioner has not been informed of her right of personal hearing. The column in the notice mentioning the date, time and venue for personal hearing has been marked as 'NA'. In the absence of personal hearing, action of the respondents will be in violation of principles of natural justice.
Learned counsel for the respondents submitted that after the petitioner files her reply, in case she requests, personal hearing shall be granted to her by fixing specific date and time for the purpose.
After hearing learned counsel for the parties, the present petition is disposed of with the observation that in case the petitioner files reply to Chief Justice's Court Serial No.19 WRIT TAX No. - 127 of 2023
Through :- Mr. Pranjal Shukla, Advocate v/s Through :- Mr. Ankur Agarwal, Standing Counsel for the respondents
CORAM : HON'BLE RAJESH BINDAL, CHIEF JUSTICE HON'BLE OM
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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.