2025 (5) TMI 469 - HC - GST

Dismissal of appeal of petitioner - order passed without granting the personal hearing - violation of principle sof natural justice - HELD THAT - In terms of the mandate of Section 75(4) of GST Act it is incumbent to grant an opportunity of hearing even if the same is not asked for as such the order under Section 73 of GST Act is in violation of principles of natural justice as well as against the mandate of Section 75(4) of GST Act. The appellate order although records the submission made in the memo of appeal however does not deal the same on merits and record that the appellant has failed to adduce any evidence. The said manner of adjudication cannot be termed as justified in view of the mandate of Section 107(12) of GST Act. Thus finding the impugned orders dated 28.12.2023 23.12.2024 to be short of requirements of the mandatory provisions the same cannot be sustained and are quashed. Matter is remanded to the assessing authority to pass fresh order in accordance with law after affording an opportunity of hearing. Petition allowed.

Summary

The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., quashed the impugned orders dated 28.12.2023 (passed under Section 73 of the GST Act) and 23.12.2024 (appellate order dismissing the appeal) for failure to comply with mandatory procedural requirements. The petitioner was denied a personal hearing despite specifically seeking one, violating Section 75(4) of the GST Act and principles of natural justice. Reliance was placed on Merino Industries Ltd. v. State of Uttar Pradesh, highlighting that passing orders without affording hearing is impermissible. Further, the appellate authority failed to decide the appeal on merits as mandated by Section 107(12) of the GST Act, which requires written orders stating points for determination, decisions, and reasons. The Court held that "the order under Section 73... is in violation of principles of natural justice" and the appellate order's adjudication "cannot be termed as justified." The matter was remanded for fresh adjudication after granting the petitioner an opportunity of hearing. The petition was allowed accordingly.