Allowed¶42

Amar Kumar Chaurasiya v. State of U.P. Thru. Prin. Secy. Deptt. of Commercial Tax Lko. and 2 Others

Allahabad HC28 Oct 2025WTAX/1198/2025

Case brief

AI extract

What is this about?

U.P. GST Act Section 73 assessment order quashed for denial of personal hearing; date of notice same as date of personal hearing; date of personal hearing same as date of filing reply; appeal dismissed as beyond limitation also quashed; natural justice before adverse adjudication; Mahaveer Trading Company 2024:AHC:38820-DB followed; Section 75(4); Office Memo No. 1406 dated 12.11.2024; remand to assessing authority for fresh order after hearing; Jaspreet Singh, J.; Allahabad High Court Lucknow Bench; decided 28.10.2025.

What did the court decide?

Orders dated 30.12.2023 (Section 73, U.P. GST Act) and 10.09.2025 (appellate dismissal) quashed; matter remanded to the assessing authority to pass a fresh order after giving the petitioner an opportunity of hearing. ¶42

Amar Kumar Chaurasiya Vs State of U.P. Thru. Prin… — GST and Indirect Tax | Allahabad HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the order dated 30.12.2023 passed under Section 73 of the U.P. GST Act, and the appellate order dated 10.09.2025 dismissing the appeal as time-barred, can be sustained where no opportunity of personal hearing was granted, the date of notice/personal hearing coinciding with the date of filing of the reply.

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Court's answer

Since the Division Bench dictum in Mahaveer Trading Company (personal hearing must be offered before any adverse adjudication order) is applicable to the present facts, the impugned orders dated 30.12.2023 and 10.09.2025 cannot be sustained and are quashed.

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Ratio / Principle

The present writ petition is allowed.

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Key takeaways

The matter is remanded to the assessing authority to pass a fresh order after giving an opportunity of hearing to the petitioner.ratio¶43

Detailed headnote1 paragraphs

WRIT TAX No. 1198 of 2025 (Allahabad High Court, Lucknow Bench, Jaspreet Singh, J.; decided October 28, 2025). The petitioner challenged (i) an adjudication order dated 30.12.2023 passed under Section 73 of the U.P. GST Act and (ii) the appellate order dated 10.09.2025 dismissing his appeal as beyond limitation, contending that no opportunity of hearing was granted and that the date of notice and the date of personal hearing were the same. Learned Standing Counsel, on instructions, stated that the date of personal hearing and the date of filing of reply were the same. Noticing paras 5 to 11 of the Division Bench decision in Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr (Writ Tax No. 303 of 2024; 2024:AHC:38820-DB) — including its observations on Section 75(4) and Office Memo No. 1406 dated 12.11.2024 issued by the Commissioner, Commercial Tax, U.P. — and holding that dictum applicable to the present facts, the Court quashed both impugned orders, allowed the petition, and remanded the matter to the assessing authority to pass a fresh order after giving the petitioner an opportunity of hearing.

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HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW

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WRIT TAX No. - 1198 of 2025

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Amar Kumar Chaurasiya

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.....Petitioner(s)

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Versus

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State Of U.P. Thru. Prin. Secy. Deptt. Of Commercial Tax Lko. And 2 Others

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.....Respondent(s) Counsel for Petitioner(s) : Ajay Pratap Singh Counsel for Respondent(s) : C.S.C.

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Court No. - 6

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HON'BLE JASPREET SINGH, J.

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Supplementary affidavit filed by learned counsel for the petitioner is taken on record.

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Heard learned counsel for the petitioner and learned Standing Counsel for the State.

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Present petition has been filed challenging the order dated 30.12.2023 passed under Section 73 of the U.P. Goods and Services Tax Act, 2017 (for short, 'the GST Act') as well as the order dated 10.09.2025 whereby the appeal was dismissed as being beyond limitation.

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Contention of learned counsel for the petitioner is that no opportunity of hearing was granted while passing the order under Section 73 of the GST Act. It has also been contended that the date of notice and the date of personal hearing is same. It has also pointed out that in absence of any opportunity the order impugned cannot be sustained and this issue was dealt by the Division Bench of this Court passed in Writ Tax No.303 of 2024 [Mahaveer Trading Company vs. Deputy Commissioner, State Tax and Anr; 2024:AHC:38820-DB].

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Learned Standing Counsel, on the basis of the instructions, states that the date of personal hearing and date of filing of reply is same.

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Before adverting to the aforesaid submissions it will be appropriate to notice the observations made by the Division Bench of this Court in

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WTAX No. 1198 of 2025

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Mahaveer Trading Company (supra) wherein in paras-5 to 11 it was held that under:

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"5. It is basic to procedural law under taxing statutes that opportunity of personal hearing must be provided to an assessee before any assessment/adjudication order is passed against him. Thus, we find it strange and wholly unacceptable merely because the substantive law has changed, the revenue authorities have changed their approach and are failing to observe that mandatory requirement of procedural law. They have thus denied opportunity of hearing to the assessee.

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6. Section 75(4) of the Act reads as below:

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"An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person."

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7. Perusal of the impugned order reveals, the petitioner appeared before the competent authority on three dates. With respect to those dates, the impugned order reads as below:

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(i) " जारी नोटीस के अनुपालन में िदनांक 23/9/2022 को श्री एफ०सी०चौहान (राजू चौहान) अिधवक्ता फमर् उिपस्थत हुए। िनोटस का स्पष्टीकरण प्रस्तुत िकया गया जो िनम्न

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(ii) " जारी नोटीस के अनुपालन में िदनांक 07/10/2022 को पुनः श्री एफ०सी० चौहान (राजू चौहान) अिधवक्ता फमर् उिपस्थ त हु ए। नोटीस का स् स्पष्टीकरण प्रस्तुत िकया गया जो िनम्न है...

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(iii) " जारी नोटीस के अनुपालन में िदनांक 27/10/2022 को पुनः श्री एफ०सी० चौहान (राजू चौहान) अिधवक्ता फमर् उिपस्थत हुए। नोटीस का स्पष्टीकरण प्रस्तुत िकया गया जो िनम्न है..........

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8. Thus, it is established on record that on all three dates, the petitioner had been called to file its reply on the points specified in the respective show-cause notice issued. The petitioner submitted its reply on each occasion. Those replies have been extracted in the impugned order. After recording the reply submitted on 27.10.2022, the adjudicating authority has chosen to deal with the merits of the replies submitted and passed a merit order.

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9. It transpires from the record, neither the adjudicating authority issued any further notice to the petitioner to show cause or to participate in the oral hearing, nor he

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WTAX No. 1198 of 2025

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granted any opportunity of personal hearing to the petitioner.

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10. On query made, the learned Additional Chief Standing Counsel fairly submits, in light of similar occurrences, noticed in other litigation, he had apprised the Commissioner, Commercial Tax. In turn, the Commissioner, Commercial Tax, Uttar Pradesh, has issued Office Memo No. 1406 dated 12.11.2024. The same has been addressed to all Additional Commissioner to be communicated to all field formations for necessary compliance. A copy of the same has been made available to this Court. It reads as below:

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"1. The column in which date of personal hearing has to be mentioned, only N.A. is mentioned without mentioning any date.

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2. The column in which time of personal hearing has to be mentioned, only N.A. is mentioned without mentioning time of hearing.

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3. In some cases, the date of personal hearing is prior to which reply to the Show Cause Notice has to be submitted this is non-est and this practice has to be discontinued. The date of reply to the Show Cause Notice has to be definitely prior to the date of personal hearing.

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4. In some cases, the date of personal hearing is on the same date to which reply to the Show Cause Notice has to be submitted-this is non-est and this practice has to be discontinued. The date of reply to the Show Cause Notice has to be definitely prior to the date of personal hearing.

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5. In all cases observed, the date of passing order either u/s 73(9)/74(9) etc. of the Act is not commensurate to the date of personal hearing. It is trite law that the date of the order has to be passed on the date of personal hearing. For eg.,the date of furnishing reply to SCN is 15.11.2023 and date of personal hearing is 17.11.2023, then the date of order has to be 17.11.2023"

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11. In view of the facts noted above, before any adverse order passed in an adjudication proceeding, personal hearing must be offered to the noticee. If the noticee chooses to waive that right, occasion may arise with the adjudicating authority, (in those facts), to proceed to deal with the case on merits, ex-parte. Also, another situation may exist where even after grant of such opportunity of personal

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WTAX No. 1198 of 2025

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hearing, the noticee fails to avail the same. Leaving such situations apart, we cannot allow a practice to arise or exist where opportunity of personal hearing may be denied to a person facing adjudication proceedings."

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Since the aforesaid dictum is applicable in the present facts and circumstances, accordingly, the impugned orders cannot be sustained and the orders dated 30.12.2023 & 10.09.2025 are accordingly quashed.

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With the aforesaid, the present petition is allowed.

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Matter is remanded to the assessing authority to pass fresh order after giving an opportunity of hearing to the petitioner.

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(Jaspreet Singh,J.)

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October 28, 2025

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Harshita

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Digitally signed by :- HARSHITA High Court of Judicature at Allahabad, Lucknow Bench

Amar Kumar Chaurasiya v. State of U.P. Thru. Prin. Secy. Deptt. of Commercial Tax Lko. and 2 Others

Case brief

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Amar Kumar Chaurasiya v. State of U.P. Thru. Prin. Secy. Deptt. of Commercial Tax Lko. and 2 Others

Case brief

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What the court decided

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