Order Overturned for Denying Hearing, Delayed Decision; Case Sent Back for Fair Reassessment by Deputy Commissioner.

The Allahabad HC set aside the impugned order dated 30.4.2024 due to a gross violation of natural justice principles, specifically the denial of a personal hearing and a five-year delay in decision-making. The court remitted the matter to the Deputy Commissioner, State Tax, Auraiya, directing a fresh order in compliance with procedural law and ensuring the petitioner is afforded a proper hearing. The judgment emphasized the necessity of procedural fairness and the importance of granting an opportunity for the parties to present their case before any adverse orders are issued.

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Issues:
Challenge to order under Section 73 read with Section 122 of the Uttar Pradesh Goods and Services Tax Act, 2017; Availability of remedy of appeal under Section 107 of the Act; Violation of Section 75(4) of the Act; Denial of opportunity of personal hearing; Inordinate delay in passing the order; Gross violation of principles of natural justice.

Analysis:

The judgment delivered by Hon'ble Manjive Shukla, J. of the Allahabad High Court pertains to a challenge raised against an order passed by the Deputy Commissioner, State Tax, Auraiya, Sector-1 Etawah under Section 73 read with Section 122 of the Uttar Pradesh Goods and Services Tax Act, 2017. The preliminary objection raised was regarding the availability of the remedy of appeal under Section 107 of the Act. The petitioner argued that there was a violation of Section 75(4) of the Act, emphasizing the importance of providing an opportunity of personal hearing to the assessee before passing any assessment or adjudication order.

It was highlighted that the revenue authorities failed to adhere to the mandatory requirement of procedural law by not granting the petitioner an opportunity of personal hearing. The judgment emphasized the significance of Section 75(4) of the Act, which mandates that an opportunity of hearing must be granted upon a written request from the person chargeable with tax or penalty or when any adverse decision is contemplated against such person. The court noted that the adjudicating authority did not issue any further notice or grant a personal hearing to the petitioner, which was a clear violation of procedural law.

The court also addressed the issue of inordinate delay in passing the order, as the show cause notice was issued in 2019, and the impugned order was passed in 2024, highlighting a five-year delay that violated principles of natural justice. The judgment emphasized that the impugned order could not be sustained due to the gross violation of fundamental principles of natural justice. It was stated that the self-imposed bar of alternative remedy could not be applied in such circumstances as it would be counterproductive to the interest of justice.

Consequently, the writ petition was allowed, and the impugned order dated 30.4.2024 was set aside. The matter was remitted to the Deputy Commissioner, State Tax, Auraiya, Sector-1 Etawah, to pass a fresh order in compliance with the law after affording due opportunity of hearing to the petitioner. The judgment underscored the importance of upholding procedural fairness and providing a fair chance for the parties to present their case before any adverse orders are passed.

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