Tax Authority Ordered to Provide Fair Hearing and Reconsider Order Under Section 73 of UP GST Act

HC allowed the writ petition challenging a tax order under Section 73 of UP GST Act. The court found a violation of natural justice principles due to denial of personal hearing. HC directed the tax authority to provide a fresh opportunity for hearing and issue a reasoned order within two months, effectively setting aside the original order.

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Issues:
Violation of natural justice in passing the impugned order under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017.

Analysis:
The High Court heard a writ petition under Article 226 of the Constitution of India where the petitioner challenged the order dated 16.12.2023 passed by the respondent under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The Court considered the factual matrix and noted that a similar situation was addressed in a previous judgment by a coordinate Bench in Mahaveer Trading Company's case. The Court highlighted the importance of offering a personal hearing before passing any adverse order in an adjudication proceeding. It emphasized that the right to a personal hearing should not be denied to a person facing adjudication proceedings, except in specific circumstances. The Court held that the impugned order was passed in violation of natural justice principles and could not be sustained. It directed the concerned officer to grant the petitioner another opportunity to file a fresh reply, schedule a date for hearing, and issue a reasoned order within two months from the date of the judgment. The writ petition was disposed of in favor of the petitioner.

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