Personal hearing under GST adjudication is mandatory before adverse order; ex parte order set aside for fresh decision.

An adjudication order under the Uttar Pradesh GST Act was unsustainable where an adverse decision was made without affording a distinct personal hearing, as Section 75(4) requires an opportunity of hearing before passing such an order. The noticee was only asked to file a reply, no separate hearing date was fixed, and no further hearing notice was issued, rendering the adjudication ex parte. The High Court set aside the order and directed fresh adjudication after due opportunity of hearing; the availability of an appeal did not bar writ relief in these circumstances.

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Issues: Whether an adjudication order passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 could be sustained when no separate opportunity of personal hearing was afforded, and whether the matter deserved remand for fresh adjudication.

Analysis: The noticee had been asked to file a reply, but no distinct date of hearing was fixed and no further notice for hearing was issued before passing the adverse order. Section 75(4) of the Uttar Pradesh Goods and Services Tax Act, 2017 requires an opportunity of hearing where an adverse decision is contemplated, and the absence of such hearing rendered the adjudication ex parte. In those circumstances, the objection based on the availability of an appeal did not bar writ relief.

Conclusion: The impugned adjudication order was unsustainable for breach of the requirement of personal hearing and was set aside, with a direction to pass a fresh order after affording due opportunity of hearing.

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