M/S New Abbas Pharma Ambedkar Nagar Thru. Proprietor Mr. Naseem Haider vs. State Of U.P. Thru. Addl. Chief Secy. State Tax Lko And 2 Others

Facts

The petitioner, M/s New Abbas Pharma Ambedkar Nagar, through its Proprietor Mr. Naseem Haider, filed a writ petition challenging an order dated 02.08.2024 passed under Section 73 of the GST Act. The petitioner's primary contention was that they were not granted an opportunity of hearing before the impugned order was passed. The respondent, State of U.P. through the Additional Chief Secretary, State Tax, and others, stated through their counsel that no specific date for hearing was fixed in the notice that was sent to the petitioner.

Held

The Court held that the impugned order dated 02.08.2024, passed under Section 73 of the GST Act, was in clear violation of Section 75(4) of the GST Act and also against the principles of natural justice. The reasoning was based on the petitioner's submission that no opportunity of hearing was granted and the respondent's admission that no date for hearing was fixed in the notice. Consequently, the Court found that the order could not be sustained. The Court quashed the impugned order and remanded the matter back to the authority to pass a fresh order in accordance with law, after providing the petitioner with an adequate opportunity of hearing. The writ petition was allowed.

Key Issues

1. Whether the order dated 02.08.2024 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 a hearing? (Question of law) The petitioner argued that the impugned order was passed in clear violation of Section 75(4) of the GST Act and the fundamental principles of natural justice, as no opportunity for a hearing was provided. The respondent, through the Standing Counsel, stated that no date for hearing was fixed in the notice sent to the petitioner, implying that the absence of a hearing date was a procedural aspect of the notice itself.