2025 (5) TMI 226 - HC - GST

Validity of ex-parte demand order and show cause notice issued under Section 73 of the State Goods Service Tax Act - HELD THAT - The very show cause notice appears to be faulty in nature as the date of personal hearing was fixed prior to the date of supply of reply. It is clear from the facts that no personal hearing was granted to the petitioner and only reply was taken into consideration. Furthermore the order impugned states that nothing was stated by the petitioner in his reply with regard to exempted supply which is clearly contrary to the facts as seen from the reply. Thus we are of the view that this order cannot be sustained as it appears to be passed without granting any opportunity of hearing and also appears to be passed without application of mind. Hence the impugned order dated April 25 2024 is quashed and set aside.

Summary

The Allahabad High Court, through Hon'ble Justices Shekhar B. Saraf and Dr. Yogendra Kumar Srivastava, quashed the impugned ex-parte demand order and show cause notice dated 25.04.2024 and 25.12.2023 issued under Section 73 of the State Goods & Service Tax Act. The petitioner challenged the order on grounds that the personal hearing was fixed before the deadline for submitting the reply, resulting in no hearing opportunity, and that the order incorrectly stated the petitioner made no submissions regarding exempted supply.The Court held that the order "cannot be sustained as it appears to be passed without granting any opportunity of hearing and also appears to be passed without application of mind." Consequently, the impugned order was set aside. The petitioner was directed to submit a fresh reply within two weeks, after which a fresh personal hearing notice must be issued and a reasoned order passed in accordance with law within twelve weeks.The writ petition was disposed of with these directions, emphasizing the essential legal principle of audi alteram partem (right to be heard) and proper adjudication.