Effective opportunity of hearing is mandatory before GST adjudication; absence of further notice vitiated the order.

An adjudication order under Section 73 of the U.P. GST Act, 2017 could not be sustained where the taxpayer had informed the authority that insolvency resolution proceedings were pending before the Interim Resolution Professional and sought time to obtain permission for a fuller reply. No further notice or hearing date was fixed before the order was passed, so the opportunity of hearing was not effective. The later exit from insolvency proceedings did not cure that procedural defect. The order was set aside, with liberty to proceed afresh after filing of a detailed reply and grant of personal hearing.

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Issues: Whether the adjudication order passed under Section 73 of the U.P. GST Act, 2017 could be sustained when the petitioner had informed the authority that it was under resolution before the Interim Resolution Professional and no further opportunity of hearing was granted.

Analysis: The petitioner had submitted a partial reply to the show cause notice and specifically apprised the adjudicating authority that insolvency resolution proceedings were pending and that further time was required to obtain permission from the Interim Resolution Professional. No further notice or hearing date was fixed before the impugned order was passed. The Court also noted that the petitioner had subsequently come out of insolvency proceedings, but that development did not cure the absence of an effective opportunity before the order was made.

Conclusion: The adjudication order could not be sustained and was set aside, with liberty for fresh adjudication after filing of a detailed reply and grant of personal hearing.

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