Personal hearing is mandatory before adverse GST adjudication; denial violates natural justice and invalidates the order.

An adverse adjudication order under the GST regime cannot stand where the noticee is denied a proper personal hearing, as that breaches the principles of natural justice. The availability of an alternative remedy does not cure the defect when the hearing requirement has not been satisfied. The impugned order was quashed, and the matter was remitted to the adjudicating authority to permit a fresh reply, grant a hearing, and pass a reasoned order.

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Issues: Whether the adjudication order passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 could be sustained when the petitioner was not granted a proper opportunity of personal hearing and was instead directed to respond afresh.

Analysis: The matter was found to be covered by an earlier coordinate Bench decision holding that, before passing an adverse adjudication order, a personal hearing must be afforded to the noticee, and denial of that opportunity constitutes a breach of fundamental principles of natural justice. The record disclosed a similar factual situation, and no reason was found to depart from the earlier view. In such circumstances, the availability of an alternative remedy did not cure the defect, and the impugned order was not sustainable.

Conclusion: The impugned order was quashed and set aside, and the matter was remitted to the adjudicating authority to grant an opportunity to file a fresh reply, fix a hearing, and pass a reasoned order.

Ratio Decidendi: An adverse adjudication order under the GST regime cannot stand where it is passed in violation of the right to personal hearing and the principles of natural justice.

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