2025 (7) TMI 330 - HC - GST

Dismissal of appeal preferred by the petitioner as being beyond time limitation - HELD THAT - On perusal of the order passed under Section 73 of the GST Act which is on record although there is a reference to the reply submitted by the petitioner in response to the show cause notice the reason for not accepting the said reply mainly on the ground that evidence was not available is prima facie not acceptable as it was open to the assessing authority to have directed the petitioner to file evidence in support of the defence as taken by the petitioner. The order under Section 73 of the GST Act prima facie holds the petitioner guilty without there being any specific application of mind particularly to the defence taken by the petitioner. Finding the said order is short of requirement of principles of natural justice the order dated 31.08.2024 is quashed. The appellate order dated 18.03.2025 is also set aside - The matter is remanded to the assessing authority to pass fresh order in accordance with law after affording opportunity of hearing - Petition allowed by way of remand.

Summary

The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., quashed the order dated 31.08.2024 passed under Section 73 of the GST Act and set aside the appellate order dated 18.03.2025, which dismissed the petitioner's appeal as time-barred. The Court found that the assessing authority failed to properly consider the petitioner's reply to the show cause notice, particularly noting that the rejection of the reply for lack of annexed evidence was "prima facie not acceptable" and that the authority did not apply its mind specifically to the petitioner's defence. Holding that the order was "short of requirement of principles of natural justice," the matter was remanded for a fresh hearing in accordance with law. The petitioner was granted 10 days to file supporting evidence and directed to appear for hearing on 16.07.2025, with no further time or notice to be granted. The petition was disposed accordingly.