M/S R.K. Traders Ambedkar Nagar Thru. Proprietor Rakesh Kumar vs. State Of U.P. Thru. Prin. Secy. Tax And Registration,Lko. And 2 Others

Facts

The petitioner, M/s R.K. Traders, through its proprietor Rakesh Kumar, filed a writ petition challenging an order dated 07.04.2024 passed under Section 73 of the GST Act. The respondent is the State of U.P. and two other authorities. The petitioner's primary contention was that no opportunity of hearing was granted to them before the impugned order was passed. The judgment notes that the impugned order itself indicates that no hearing was accorded.

Held

The Court held that the condition prescribed under Section 75(4) of the GST Act is mandatory and had not been followed in passing the order dated 07.04.2024. The reasoning was based solely on the non-compliance with this mandatory provision, as evidenced by the impugned order itself. The ratio decidendi is that an order passed in violation of the mandatory requirement of providing an opportunity of hearing under Section 75(4) of the GST Act is unsustainable. Consequently, the order dated 07.04.2024 was quashed. The matter was remanded to the concerned authority to pass a fresh order in accordance with the law, after providing adequate opportunity of hearing to the petitioner.

Key Issues

1. Whether the order dated 07.04.2024 passed under Section 73 of the GST Act is liable to be quashed for non-compliance with the mandatory provisions of Section 75(4) of the GST Act, specifically the requirement of providing an opportunity of hearing. Petitioner's contention: The petitioner argued that the order impugned was passed without granting them an opportunity of hearing, which is a mandatory procedural requirement under Section 75(4) of the GST Act. They asserted that the order itself reflects this lack of hearing. Respondent's contention: The judgment records no specific arguments from the respondent.