Order to Be Set Aside as No Opportunity for Hearing Was Granted to Assessee | HC

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Mandatory personal hearing under GST

Case Details: Jain Distributors vs. State of U.P. - [2025] 172 taxmann.com 19 (Allahabad)

Judiciary and Counsel Details

  • Pankaj Bhatia, J.
  • Utkarsh Misra, Abhishek for the Petitioner.

Facts of the Case

The petitioner challenged an order passed under Section 73 of the CGST/UPGST Act, 2017, whereby a tax demand was confirmed. It was contended that the notice issued by the department did not specify a date for a personal hearing, with “N.A.” recorded in the relevant column. Further, the impugned order did not mention that any opportunity of hearing had been granted. The petitioner argued that this omission violated Section 75(4) of the GST Act, which mandates affording an opportunity of hearing before passing an adverse order. Citing relevant judicial precedents, it was asserted that the order was legally unsustainable. The petition was filed before the Allahabad High Court seeking relief against the impugned order.

High Court Held

The Hon’ble Allahabad High Court held that Section 75(4) of the CGST/UPGST Act, 2017, mandates granting an opportunity of hearing before passing an order confirming demand. Since the notice issued to the petitioner failed to specify a date for a personal hearing, and the impugned order did not record that such an opportunity was provided, the order was rendered unsustainable. Referring to binding judicial precedent, the Court reiterated that compliance with Section 75(4) is mandatory. Consequently, the impugned order was set aside, and the matter was remanded for fresh adjudication in accordance with the law, ensuring that the petitioner is granted an opportunity of hearing.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied