2024 (9) TMI 504 - HC - GST

Challenge to order passed by the respondent No. 2 under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 for the Tax Period-July 2017-March 2018 - HELD THAT - The factual matrix is such that the matter is squarely covered by a coordinate Bench judgment of this Court 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.' Upon a perusal of record, it appears that the factual matrix is very similar to one in Mahaveer Trading Company. There are no any reason to take a different stand. The impugned order dated 14.12.2023 passed by Deputy Commissioner, State Tax, Sector-2, Kanpur is quashed and set-aside with a direction given to the officer concerned to grant the petitioner another opportunity of filing a fresh reply and thereafter fix a date of hearing and pass a reasoned order - Petition disposed off.

Summary

Issues:
Challenge to order under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 for Tax Period-July 2017-March 2018.

Analysis:
The High Court heard the writ petition under Article 226 of the Constitution of India where the petitioner contested the order dated 14.12.2023 issued by the respondent No. 2 under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The counsel for both parties presented their arguments before the Court. The Court noted that the factual scenario resembled a previous judgment of a coordinate Bench in Mahaveer Trading Company vs. Deputy Commissioner State Tax and another. The Court referred to a relevant portion of the previous judgment highlighting the importance of offering a personal hearing before passing any adverse order in adjudication proceedings. It emphasized that denying the opportunity of a personal hearing would violate fundamental principles of natural justice. The Court clarified that the impugned order could not be upheld as it contravened these principles and directed the concerned officer to allow the petitioner to submit a fresh reply, schedule a hearing, and issue a reasoned order within two months.

The Court observed that the circumstances of the present case closely mirrored those in the Mahaveer Trading Company case. Consequently, the Court found no justification to deviate from the precedent set in the earlier judgment. Subsequently, the Court quashed the impugned order dated 14.12.2023 issued by the Deputy Commissioner, State Tax, Sector-2, Kanpur, and instructed the officer to provide the petitioner with another opportunity to submit a fresh reply, conduct a hearing, and deliver a well-reasoned order within two months from the current date. The Court disposed of the writ petition based on these findings and directions.