2025 (2) TMI 69 - HC - GST

Violation of principles of natural justice - no opportunity of hearing was granted while passing order under Section 73 of GST Act which is mandatory in terms of Section 75(4) of GST Act - challenge to order passed under Section 73 of GST Act - HELD THAT - Considering the fact prima-facie the impugned order is without following the mandate of Section 75(4) of GST Act and is also in violation of principles of natural justice thus both the impugned orders i.e. 25.04.2024 10.12.2024 are quashed. Considering the said fact prima-facie the impugned order is without following the mandate of Section 75(4) of GST Act and is also in violation of principles of natural justice thus both the impugned orders i.e. 25.04.2024 10.12.2024 are quashed - Petition allowed by way of remand.

Summary

The judgment from the Allahabad High Court, presided over by Hon'ble Pankaj Bhatia, J., addresses a petition challenging two orders: one dated 25.04.2024 under Section 73 of the GST Act and another dated 10.12.2024 dismissing the petitioner's appeal. The petitioner argued that the order under Section 73 was issued without granting the mandatory "opportunity of hearing" as required by Section 75(4) of the GST Act. The court noted that the learned Standing Counsel did not dispute this lack of opportunity. Consequently, the court found that the orders were issued in violation of the principles of natural justice and quashed both orders. The matter was remanded to the Assessing Authority to issue a new order after providing the petitioner with a hearing. The petition was allowed on these grounds.