2025 (2) TMI 68 - HC - GST

Challenge to order passed u/s 129(3) of the U.P.G.S.T. Act 2017 - detention of goods - violation of principles of natural justice - HELD THAT - It is apparent that the notice Annexure-10 has been issued to the petitioner on 19.12.2024 giving seven days time to respond to the said show cause notice however the order dated 19.12.2024 Annexure-1 determining the same as is reflected from summary of rectification of order the order passed earlier on 13.12.2024 in the name of the driver has been rectified in the name of the petitioner. The very fact that a fresh show cause was issued to the petitioner it was incumbent on the respondents to have waited for the response to the show cause notice and thereafter even if the rectification order was required to be passed the same could only be passed after receipt of the reply - Passing of the order on the same day without waiting for response to the show cause notice by the petitioner was in gross violation of principle of natural justice and therefore the order impugned passed on 19.12.2024 Annexure-1 cannot be sustained. Petition allowed.

Summary

**Summary of Judgment: Allahabad High Court****Case Overview:**The petitioner challenged an order dated 19.12.2024, issued under Section 129(3) of the U.P.G.S.T. Act, 2017, concerning the detention of goods and subsequent demand notice.**Key Legal Issues:**1. **Violation of Natural Justice:** The petitioner argued that the order was passed on the same day the show cause notice was issued, without waiting for their response, which violated the principles of natural justice.2. **Ownership Claim:** The petitioner claimed ownership of the detained goods and contested the initial notice issued in the driver's name.**Court's Analysis:**- The court noted that a fresh show cause notice was issued to the petitioner on 19.12.2024, granting seven days to respond. However, the order was passed on the same day, which was a procedural flaw.- It was incumbent upon the respondents to wait for the petitioner's response before passing the rectification order.**Holding:**The court held that the order dated 19.12.2024 was in "gross violation of principle of natural justice" and thus "cannot be sustained."**Conclusion:**- The petition was allowed, and the impugned order was quashed.- The matter was remanded to the Assistant Commissioner, State Tax, Agra, for reconsideration. The petitioner was granted the opportunity to respond to the show cause notice, and the authority was directed to pass an appropriate order post-hearing.