M/S Bcs Consulting Private Limited Thru. Director Abhishek Bhartiya vs. State Of U.P. Thru. Prin. Secy. Institutional Finance Lko. And 3 Others

Facts

The petitioner, M/s Bcs Consulting Private Limited, challenged two orders: one dated 12.04.2024 passed under Section 73 of the GST Act, and another dated 27.12.2024 which dismissed their appeal. The petitioner contended that the order under Section 73 was passed without granting them an opportunity of hearing. The respondent, State of U.P. through the Principal Secretary, Institutional Finance, and three others, stated that the hearing date was fixed prior to the filing of the petitioner's reply. The High Court considered this aspect in light of a previous judgment.

Held

The Court allowed the petition, quashing the orders dated 12.04.2024 and 27.12.2024. The Court found that the order impugned, passed under Section 73 of the GST Act, had not accorded any hearing to the petitioner. This finding was based on the principle laid down in the Court's previous judgment in Writ Tax No. 303 of 2024 (Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr.). The ratio decidendi is that an order passed without providing an opportunity of hearing violates principles of natural justice and is therefore invalid. Consequently, the matter was remanded to the assessing authority to pass a fresh order after affording the petitioner an opportunity of hearing.

Key Issues

1. Whether the order dated 12.04.2024, passed under Section 73 of the GST Act, is liable to be quashed for non-compliance with the principles of natural justice, specifically the right to a hearing? The petitioner argued that no opportunity of hearing was provided before the impugned order was passed. The respondent contended that a hearing date was fixed prior to the filing of the petitioner's reply, implying that the opportunity was implicitly available or scheduled. The Court's decision hinges on whether the procedural requirement of granting a hearing was met.