Buddha Resorts Pvt. Ltd Vs State of U.P (Allahabad High Court)
The petition challenged an adjudication order dated 30.03.2024 passed under Section 73(9) of the U.P. GST Act, 2017 for the tax period 2018–19. The petitioner contended that the essential requirements of natural justice were violated as no reasonable opportunity of personal hearing was granted. It was submitted that the date fixed for personal hearing coincided with the date fixed for filing the reply, and in the reminder dated 04.03.2024, the column for date and time of personal hearing mentioned “NA.” Reliance was placed on an earlier writ decision to support this contention.
The facts relating to the absence of a proper personal hearing were not disputed by the State. The Court observed that the rules of natural justice are well established and do not permit exceptions in such circumstances. It held that unless the petitioner is put to notice regarding the proposed demand and is given an adequate opportunity to present its case, any adjudication order would remain procedurally defective. In view of the admitted position, the Court found no useful purpose in keeping the petition pending, calling for a counter affidavit, or relegating the petitioner to the appellate forum.
Accordingly, the writ petition was disposed of with specific directions. The adjudication order dated 30.03.2024 was set aside. The impugned order was directed to be treated as a final notice. The petitioner was permitted to submit a further reply within three weeks and was allowed to raise all jurisdictional and merit-based issues. Upon such compliance, the adjudicating authority was directed to fix a date for personal hearing with at least 15 days’ notice. The petitioner undertook to appear on the dates fixed, and the authority was directed to pass an appropriate reasoned order thereafter.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
Heard Shri Mudit Agarwal, learned counsel for the petitioner and learned Standing Counsel appearing for the State-respondents.
2. Challenge has been raised to the adjudication order dated 30.03.2024 passed under Section 73(9) of the U.P. G.S.T Act, 2017 for the tax period 2018-19.
3. It has been submitted, the essential requirements of rules of natural justice have been violated inasmuch as the petitioner was not given reasonable opportunity of personal hearing. The date fixed for personal hearing was the date fixed for filing of reply and in reminder dated 04.03.2024 ‘NA’ was mentioned in the column of date and time of personal hearing. In that regard reliance has been placed on Writ Tax No.303 of 2024, Mahaveer Trading Company Vs. Deputy Commissioner State Tax and Another.
4. The above facts are not in dispute. Therefore, no useful purpose may be served either in keeping the present petition or calling for a counter affidavit or relegating the petitioner to the forum of appeal. The rules of natural justice are far too well established to allow any exception to be made in that regard. Unless, the petitioner had been put to notice with respect to the demand proposed to be created by the adjudication order and unless he had been given adequate opportunity to present his case, the order that may arise may remain procedurally defective.
5. Accordingly, the writ petition stands disposed of with the following directions:-
(i) The order dated 30.03.2024 is set aside.
(ii) The petitioner may treat the impugned order as the final notice.
(iii) It may submit its further reply thereto within a period of three weeks. In that regard, it may remain open to the petitioner to raise all jurisdictional and merit issues. Subject to such compliance made, the adjudicating authority may fix a date for personal hearing with at least 15 days notice to allow the petitioner to be prepared on all counts. The petitioner undertakes to appear before the adjudicating authority on the dates that may be fixed. Accordingly, appropriate reasoned order may be passed thereafter.
