2024 (4) TMI 422 - HC - GST

Principles of natural justice - vague SCN - notice did nor disclose to the petitioner, the date, time or venue of personal hearing - violation of Section 75(4) of UPGST Act - HELD THAT - The issue has been considered by a coordinate bench of this Court in M/S MOHINI TRADERS VERSUS STATE OF U.P. AND ANOTHER 2023 (6) TMI 531 - ALLAHABAD HIGH COURT as also in MAHAVEER TRADING COMPANY VERSUS DEPUTY COMMISSIONER STATE TAX AND ANOTHER 2024 (3) TMI 334 - ALLAHABAD HIGH COURT where it was held that The impugned order cannot be sustained in the eyes of law. It has been passed in gross violation of fundamental principles of natural justice. The self imposed bar of alternative remedy cannot be applied in such facts. If applied, it would be of no real use. In fact, it would be counter productive to the interest of justice. Here, it may be noted, the appeal authority does not have the authority to remand the proceedings. In view of the facts noted above and the earlier decisions of the Court, no useful purpose may be served in keeping the present petition pending or calling for a counter affidavit at this stage. The impugned order dated 17.03.2023 is set aside. The matter is remitted to the respondent no.2/Assistant Commissioner, Sector - 8, Varanasi (A) Varanasi I, Commercial Tax to issue a fresh notice to the petitioner within a period of two weeks from today - petition allowed by way of remand.

Summary

Issues involved: Challenge to order u/s 74(9) of U.P. GST Act, 2017 for lack of disclosure in show-cause notice

The judgment by the High Court of Allahabad addressed the challenge to an order dated 17.03.2023 passed by respondent no.2 under Section 74(9) of the U.P. GST Act, 2017. The petitioner argued that the order was preceded by a show-cause notice dated 01.10.2022 and a reminder notice dated 26.12.2022, which did not disclose the date, time, or venue of personal hearing as required by Section 75(4) of the Act. The Court referred to previous decisions in similar cases and concluded that the impugned order was passed in violation of the Act. Therefore, the Court allowed the writ petition, setting aside the order and remitting the matter to the Assistant Commissioner to issue a fresh notice to the petitioner within two weeks for expeditious proceedings.

Comprehensive details for each issue:

1. The petitioner challenged the order dated 17.03.2023 passed by respondent no.2 under Section 74(9) of the U.P. GST Act, 2017, citing lack of disclosure in the show-cause notice regarding the date, time, and venue of personal hearing, as required by Section 75(4) of the Act.

2. The Court considered the argument in light of previous decisions in cases such as M/S Mohini Traders Vs. State of U.P. & Anr. and Mahaveer Trading Company Vs. Deputy Commissioner State Tax & Anr., and found that the impugned order was indeed passed in violation of the Act.

3. Given the facts and precedents, the Court deemed it unnecessary to keep the petition pending or call for a counter affidavit, and proceeded to allow the writ petition, setting aside the order dated 17.03.2023.

4. The matter was remitted to the Assistant Commissioner, Sector - 8, Varanasi, with directions to issue a fresh notice to the petitioner within two weeks, ensuring that the petitioner appears before the authority for expeditious proceedings.