2024 (10) TMI 204 - HC - GST

Challenge to order passed by the respondent No. 2 u/s 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 - HELD THAT - The matter is squarely covered by a coordinate Bench judgment of this Court in Mahaveer Trading Company vs. Deputy Commissioner State Tax and another 2024 (3) TMI 334 - ALLAHABAD HIGH COURT where it was held that ' 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.' Upon a perusal of record, it appears that the factual matrix is very similar to one in Mahaveer Trading Company's 2024 (3) TMI 334 - ALLAHABAD HIGH COURT - there are no reason to take a different stand. The impugned order dated 29.4.2024 passed by Deputy Commissioner, State Tax, Karvi Sector-1, Banda, Uttar Pradesh (Respondent No. 2) 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:
Writ petition under Article 226 challenging an order passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017.

Analysis:
The judgment delivered by the High Court pertained to a writ petition filed under Article 226 of the Constitution of India challenging an order issued by the Deputy Commissioner, State Tax, Karvi Sector-1, Banda, Uttar Pradesh. The petitioner had expressed grievance regarding the order dated 29.4.2024 passed by the respondent under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner decided not to press the writ petition on Prayer No. 2 and focused only on Prayer No. 1. The Court noted that the factual scenario was akin to a previous judgment of a coordinate Bench in Mahaveer Trading Company vs. Deputy Commissioner State Tax and another. The Court emphasized the importance of providing a personal hearing to the noticee before passing any adverse order in an adjudication proceeding. It was highlighted that the impugned order was in violation of fundamental principles of natural justice, and the self-imposed bar of an alternative remedy could not be applied in such circumstances. The Court held that the impugned order was unsustainable in the eyes of the law due to the procedural irregularities and lack of adherence to natural justice principles.

The Court, after perusing the record and finding similarities with the aforementioned judgment, quashed and set aside the impugned order dated 29.4.2024. A direction was issued to the concerned officer to provide the petitioner with another opportunity to file a fresh reply, schedule a date for a hearing, and subsequently pass a reasoned order. The Court mandated that this entire process should be completed within a period of two months from the date of the judgment. The writ petition was disposed of based on these findings and directions.