Aman Traders Vs Deputy Commissioner And Another (Allahabad High Court)
The writ petition challenged an order dated 18.08.2023 passed under Section 74 of the UPGST Act, 2017. At the threshold, the respondents raised a preliminary objection regarding the availability of an alternative appellate remedy under Section 107 of the Act. The petitioner countered this objection by alleging violation of Section 75(4), which mandates granting an opportunity of hearing where an adverse decision is contemplated.
The Court examined a similar earlier decision in Writ Tax No. 303 of 2024, where it had emphasized that providing an opportunity of personal hearing before passing an assessment or adjudication order is a basic procedural requirement under taxing statutes. Section 75(4) expressly requires that such an opportunity be granted either upon written request or whenever an adverse decision is proposed.
In the earlier case, the record showed that although the assessee had appeared and filed replies on multiple dates pursuant to show-cause notices, no opportunity of oral or personal hearing was granted before passing the final order. The Court had found this approach unacceptable and contrary to mandatory procedural law. It also noted that the adjudicating authority neither issued any further notice nor fixed a date for personal hearing. The absence of personal hearing amounted to a denial of natural justice.
