2025 (7) TMI 993 - HC - GST

GST authority violated natural justice by passing order without hearing opportunity under Section 75(4)

M/s Moringo Organics Private Limited Lko. Thru. Authorised Representative Senthil V Versus Addl. Commissioner Grade 2 Appeals State Tax Deptt. Lko. And Another

The Allahabad HC allowed a petition in part after finding violation of natural justice principles. The GST authority passed an order dated 04.12.2023 ... Violation of principles of natural justice - no opportunity of hearing was granted while passing the order which is contrary to the mandate of Section 75(4) of GST Act - appeal dismissed as being beyond limitation - Doctrine of merger - HELD THAT:- Considering the fact that the appeal has been dismissed as being beyond limitation, the same would not attract the doctrine of merger. As regards the order dated 04.12.2023, ex-facie, in the order, no hearing has been granted to the petitioner. Even no notice for hearing was issued to the petitioner which fact could not be controverted by learned Standing Counsel. Petition allowed in part. The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., heard a petition challenging (i) the demand order dated 04.12.2023 under Section 73(9) of the GST Act, (ii) the dismissal of an appeal dated 09.04.2025 as time-barred, and (iii) certain notifications alleged to lack the GST Council's mandatory recommendation under Section 168A of the Act. The petitioner contended that the demand order was passed without granting an opportunity of hearing, violating Section 75(4) of the GST Act, relying on this Court's precedent in Mahaveer Trading Company v. Deputy Commissioner (Writ Tax No.303 of 2024).The Court noted conflicting High Court decisions on related issues pending before the Supreme Court in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax (S.L.P. No.4240/2025). The petitioner did not press the challenge to the notifications pending the Supreme Court's decision.Crucially, the Court found that no hearing or notice was given before passing the demand order, a fact uncontested by the State. The appeal's dismissal as beyond limitation was held not to invoke the doctrine of merger. Following Mahaveer Trading Company, the Court quashed the impugned orders dated 04.12.2023 and 09.04.2025 and remanded the matter to the assessing authority to pass a fresh order after affording the petitioner an opportunity of hearing 'in accordance with law.'