Allahabad HC Quashes GST Order for Lack of Proper Hearing Notice

Chand Traders Vs State of U.P. and Another (Allahabad High Court)

The Allahabad High Court examined whether an adjudication order dated 28 August 2020, arising from a show cause notice dated 26 January 2020, suffered from illegality due to denial of opportunity of hearing. The petitioner’s GST registration had been cancelled on 13 November 2019. Subsequently, the show cause notice was issued only through electronic mode on the Common Portal.

The Court noted that, as per the respondents’ own position and earlier precedent, once registration is cancelled, the taxpayer may not be expected to access the portal, and therefore, notices must be served physically under Section 169(1) of the U.P.G.S.T. Act, 2017. Since no physical notice was issued or served, the Court held that principles of natural justice were violated, preventing the petitioner from filing objections or replying to the notice.

Recognising that the right to be heard is protected under Section 75(4), the Court set aside the impugned adjudication order and remitted the matter for fresh consideration. Directions were issued to serve a fresh notice along with relied upon documents within ten days. The petitioner was granted two weeks to file a reply, followed by a hearing with at least 15 days’ notice. The proceedings are to be concluded within two months thereafter.