Order passed u/s 74 of UPGST Act quashed as opportunity of hearing not granted

Order passed u/s 74 of UPGST Act quashed as opportunity of hearing not granted

In a recent judgment and order the Hon’ble Allahabad High Court has quashed order passed u/s 74 of UPGST Act as opportunity of hearing not granted to the assessee.

ABCAUS Case Law Citation:
ABCAUS 4002 (2024) (05) HC

Important Case Laws relied upon:
M/s Shree Salasar Steels v. State of U.P. and others
M/s Bajrang Building Material v. State of U.P. and others
M/s Eastern Machine Bricks and Tiles Industries v. State of U.P. and others

In the instant case, the assessee had filed a Writ Petition before the Hon’ble Allahabad High Court challenging the order passed by the Assistant Commissioner under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (the Act) and the appellate order passed by the Additional Commissioner.

The petitioner submitted that no opportunity of personal hearing was granted to the petitioner in the matter. It was further submitted that in spite of seeking the Special Investigation Branch Report (the SIB report), no SIB report was provided to the petitioner.

In light of the same, he submitted that the order passed under Section 74 of the Act was null and void and breaches the principles of natural justice.

The Petitioner relied upon the various judgments of the High Court to buttress his argument that before passing an adverse order under Section 74 of the Act, opportunity of hearing is required to be afforded to a person concerned as per Section 75(4) of the Act.

The State fairly submitted that no opportunity of hearing was granted to the petitioner in the matter.

The High Court observed that section 75(4) of the Act provides as uner:

“An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”

In the light of the above facts, the Hon’ble High Court opined that the impugned order was liable to be quashed and set aside.

Accordingly, the Hon’ble High Court issued a writ of certiorari quashing the impugned orders with a direction upon the officer concerned to provide a copy of the SIB report to the petitioner within three weeks and subsequent to providing the SIB report, opportunity of hearing must be afforded to the petitioner before passing final order under Section 74 of the Act.

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