M/S Swastika Associates Thru. Proprietor Rajat Jindal vs. State Of U.P. Thru. Addl. Chief Secy. State Tax Lko. And 2 Others
Original PDF →Facts
The petitioner, M/s Swastika Associates, challenged two orders: one dated 27.08.2024 passed under Section 73 of the GST Act, and another dated 27.01.2025 which dismissed their appeal. The petitioner contended that neither order was preceded by a proper opportunity of hearing, and that the notices required to be served were not duly served. The respondent, the State of U.P. and others, was represented by the Standing Counsel. The court noted that the notice under Section 73 indicated the date of hearing and the date for filing a reply as the same day, 27.06.2024, a fact not denied by the Standing Counsel. Similarly, notices in the appeal were served under the 'additional notice' tab.
Held
The Court held that the notice issued under Section 73 of the GST Act, which specified the same date for hearing and filing a reply (27.06.2024), did not provide a reasonable opportunity for the petitioner to present their case. This fact was not disputed by the Standing Counsel. The Court also noted that notices in the appeal were served under the 'additional notice' tab, raising concerns about proper service. Relying on its previous decisions in Mahaveer Trading Company vs Deputy Commissioner State Tax and another (Writ Tax No.303 of 2024, decided on 04.03.2024) and Ola Fleet Technologies (Supra), the Court found both impugned orders to be unsustainable. The ratio decidendi is that a notice requiring a hearing and reply on the same day, or improper service of notice, violates principles of natural justice. Consequently, the orders dated 27.08.2024 and 07.01.2025 were quashed, and the matter was remanded back to the Assessing Authority for a fresh decision after providing an opportunity of hearing.
Key Issues
1. Whether the order dated 27.08.2024 passed under Section 73 of the GST Act is vitiated due to denial of adequate opportunity of hearing and improper service of notice? 2. Whether the appellate order dated 27.01.2025 is vitiated due to denial of adequate opportunity of hearing and improper service of notice? The petitioner argued that in both the impugned orders, no opportunity of hearing was granted, and the notices were not served as required by law. Reliance was placed on the judgment in Ola Fleet Technologies Private Limited vs State of U.P. and others: 2024:AHC:116559-DB. The respondent, through the Standing Counsel, did not deny the factual assertion regarding the same date for hearing and reply in the Section 73 notice.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC-LKO:19204 Court No. - 6 Case :- WRIT TAX No. - 262 of 2025 Petitioner :- M/S Swastika Associates Thru. Proprietor Rajat Jindal Respondent :- State Of U.P. Thru. Addl. Chief Secy. State Tax Lko. And 2 Others Counsel for Petitioner :- Amit Prakash Sharma Counsel for Respondent :- C.S.C. Hon'ble Pankaj Bhatia,J.
Supplementary affidavit filed today is taken on record.
Heard learned Counsel for the petitioner as well as learned Standing Counsel.
The present petition has been filed challenging the order dated 27.08.2024 passed under Section 73 of the GST Act as well as the order dated 27.01.2025 whereby, the appeal was dismissed.
The contention of the Counsel for the petitioner is that in both the orders, no opportunity of hearing was granted. It is further argued that the notice as required to be served, are not served. Reliance is placed in the case of Ola Fleet Technologies Private Limited vs State of U.P. and others: 2024:AHC:116559- DB.
Considering the facts that the notice under Section 73 was served upon the petitioner, in which, the date of hearing and the date of reply was shown to be same i.e. 27.06.2024. This fact is not denied by the learned Standing Counsel. In appeal also notices were served under the tab 'additional notice'. Both the said issues were dealt with by this Court in the case of Mahaveer Trading Company vs Deputy Commissioner State Tax and another: Writ Tax No.303 of 2024, decided on 04.03.2024 and in the case of Ola Fleet Technologies (Supra). Relying on the said judgments, the orders impugned dated 27.08.2024 and 7.01.2025 are quashed. The writ petition is allowed.
The matter is remanded back to the Assessing Authority to pass fresh order in accordance with law after providing opportunity of hearing to the petitioner. Order Date :- 7.4.2025 akverma ASHOK KUMAR VERMA High Court of Judicature at Allahabad, Lucknow Bench
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.