M/S New Jaipur Dupatta House Thru. Its Proprietor Shiv Kumar Sawlani vs. State Of U.P. Thru. Prin. Secy. Tax , And Registration Civil Secretariat Lko. And 2 Others
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The petitioner, M/s New Jaipur Dupatta House, through its Proprietor Shiv Kumar Sawlani, filed a writ petition challenging an order dated 22.04.2024 passed under Section 73 of the GST Act. The petitioner contended that the order was passed without granting an opportunity of hearing, which violates Section 75(4) of the GST Act. The respondent, State of U.P. through the Principal Secretary, Tax and Registration, did not dispute the petitioner's assertion that no opportunity of hearing was provided.
Held
The Court held that the impugned order dated 22.04.2024 could not be sustained. The reasoning was that the order was passed in violation of Section 75(4) of the GST Act, which guarantees an opportunity of hearing. This procedural lapse was also considered violative of Article 14 of the Constitution of India. Consequently, the order dated 22.04.2024 was quashed. The matter was remanded back to the Assessing Authority to pass a fresh order in accordance with law, after providing the petitioner with an adequate opportunity of hearing. No specific amount in dispute was recorded.
Key Issues
1. Whether the order dated 22.04.2024 passed under Section 73 of the GST Act is liable to be quashed for violation of the principles of natural justice, specifically the right to an opportunity of hearing as mandated by Section 75(4) of the GST Act? Petitioner's contention: The petitioner argued that the impugned order is unsustainable as it was passed in violation of Section 75(4) of the GST Act, which mandates an opportunity of hearing before passing an order. This violation also infringes upon the petitioner's rights under Article 14 of the Constitution of India. Respondent's contention: The learned Standing Counsel, based on instructions, did not dispute the fact that no opportunity of hearing was granted to the petitioner prior to the passing of the impugned order.
Sections Cited
Section 73, Section 75(4)
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC-LKO:17177 Court No. - 6 Case :- WRIT TAX No. - 250 of 2025 Petitioner :- M/S New Jaipur Dupatta House Thru. Its Proprietor Shiv Kumar Sawlani Respondent :- State Of U.P. Thru. Prin. Secy. Tax , And Registration Civil Secretariat Lko. And 2 Others Counsel for Petitioner :- Utkarsh Misra,Abhishek Counsel for Respondent :- C.S.C. Hon'ble Pankaj Bhatia,J.
Heard learned Counsel for the petitioner as well as learned Standing Counsel.
The present petition has been filed challenging an order dated 22.04.2024 passed under Section 73 of the GST Act.
The neat submission of the Counsel for the petitioner is that no opportunity of hearing was granted prior to passing of the order impugned, which is contrary to the mandate of Section 75 (4) of the GST Act.
Learned Standing Counsel based upon instructions does not dispute the fact that no opportunity of hearing was granted.
Considering the aforesaid submissions, the order impugned cannot be sustained as being violation of Section 75(4) of the GST Act as also being violative of Article 14 of the Constitution of India and as such, the order impugned dated 22.04.2024 is 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 adequate opportunity of hearing.
The instructions are taken on record. Order Date :- 26.3.2025 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.