Mandatory personal hearing under GST law cannot be replaced by a written reply; adverse assessment was set aside.

A mandatory personal hearing under Section 75(4) of the Uttar Pradesh GST Act must be granted before an adverse assessment order is passed, and a written reply opportunity does not substitute for oral hearing. Where the notice under Section 73(1) records that personal hearing is not applicable, and the record shows no oral hearing was afforded, the procedural lapse is mandatory and outcome-determinative. The assessment order was therefore set aside and the matter remitted for fresh adjudication, with permission to file the final reply and be heard.

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Issues: Whether the impugned assessment order was liable to be set aside for failure to grant the mandatory personal hearing under Section 75(4) of the Uttar Pradesh Goods and Services Tax Act, 2017, despite the notice issued under Section 73(1) of the Act.

Analysis: The notice called for a written reply but recorded the date, time and venue of personal hearing as not applicable. On the admitted record, no opportunity of oral hearing was afforded. The statutory scheme under Section 75(4) requires a personal hearing before an adverse decision is taken, and the opportunity to file a reply is distinct from the opportunity of oral hearing. Non-filing of a reply could at most affect the written response stage and could not extinguish the right to be heard orally. The procedural defect was therefore held to be mandatory and outcome-determinative.

Conclusion: The impugned order was set aside and the matter was remitted for fresh adjudication after permitting the petitioner to file its final reply and to be heard.

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