M/S Sd Cargo Private LTD. Thru. Its Authorized Signatory Prakash Badal Kumar vs. State Of U.P. Thru. Addl. Chief Secy. State Tax,Lko. And 3 Others
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The petitioner, M/s Sd Cargo Private Ltd., challenged an order dated 16.04.2024 passed under Section 73 of the GST Act. The petitioner's appeal against this order was dismissed as being beyond limitation, and this dismissal order is not being challenged. The primary grievance of the petitioner is that no opportunity of hearing was provided before the order under Section 73 was passed, and that the order failed to comply with the mandatory requirements of Section 75(4) of the GST Act. The respondents are the State of U.P. and other authorities.
Held
The Court held that the order dated 16.04.2024, passed under Section 73 of the GST Act, was liable to be quashed. The Court found that no hearing was accorded to the petitioner before the impugned order was passed, which constitutes a violation of the mandatory requirements of Section 75(4) of the GST Act. Adopting the reasoning from its previous decision in M/s Mohini Traders (Supra), the Court concluded that the non-compliance with the principles of natural justice by failing to provide an opportunity of hearing vitiates the order. The ratio decidendi is that an order passed without affording the statutory opportunity of hearing is unsustainable in law. The Court quashed the order dated 16.04.2024 and allowed the writ petition. The matter was remanded back to the respondents to pass a fresh order in accordance with law, after providing the petitioner with an opportunity of hearing.
Key Issues
1. Whether the order dated 16.04.2024, passed under Section 73 of the GST Act, is liable to be quashed for non-compliance with the mandatory requirements of Section 75(4) of the GST Act, specifically regarding the failure to provide an opportunity of hearing to the petitioner? Petitioner's Contention: The petitioner argued that no opportunity of hearing was granted before the impugned order under Section 73 was passed. They contended that this non-compliance with Section 75(4) renders the order invalid. The petitioner relied on the reasoning adopted by this Court in the case of M/s Mohini Traders vs State of U.P. and another; Writ Tax No.550 of 2023, decided on 03.05.2023. Revenue's Contention: The judgment records no specific argument from the revenue's side on this issue.
Sections Cited
Section 73, Section 75(4)
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC-LKO:3774 Court No. - 7 Case :- WRIT TAX No. - 25 of 2025 Petitioner :- M/S Cargo Private Ltd. Thru. Its Authorized Signatory Prakash Badal Kumar Respondent :- State Of U.P. Thru. Addl. Chief Secy. State Tax,Lko. And 3 Others Counsel for Petitioner :- Punit Kumar Srivastava,Ishank Srivastava,Rakesh Srivastava,Shashank Srivastava 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 the order dated 16.04.2024 passed under Section 73 of the GST Act.
The submission of the Counsel for the petitioner is that the appeal preferred by the petitioner has been dismissed as being beyond limitation, as such, the said order is not challenged. It is argued by the Counsel for the petitioner that no opportunity of hearing was accorded and the order passed under Section 73 did not comply with the mandatory requirements contained in Section 75(4) of the GST Act. Similar issue was considered by this Court in the case of M/s Mohini Traders vs State of U.P. and another; Writ Tax No.550 of 2023, decided on 03.05.2023. 4. Considering and adopting the same reasoning as contained in M/s Mohini Traders (Supra) and finding that no hearing was accorded to the petitioner while passing of the orders impugned. The orders dated 16.04.2024 is quashed. The writ petition is allowed.
The matter is remanded back to the respondents to pass fresh order, in accordance with law, after giving opportunity of hearing to the petitioner. Order Date :- 21.1.2025 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.