Ambika Kids Wear Vs State of U.P. (Allahabad High Court)
The Allahabad High Court set aside an adjudication order dated 09.07.2024 passed under Section 73(9) of the U.P. GST Act, 2017 for the tax period 2019-20, holding that the principles of natural justice had been violated. The petitioner contended that the date fixed for filing the reply and the date fixed for personal hearing were the same, depriving it of a reasonable opportunity to present its case. Reliance was placed on the decision in Mahaveer Trading Company Vs. Deputy Commissioner State Tax and Another.
The Court noted that these facts were undisputed and observed that unless a taxpayer is given adequate notice of the proposed demand and sufficient opportunity to respond, the resulting adjudication order remains procedurally defective. Consequently, the Court set aside the impugned order and directed that it be treated as the final notice. The petitioner was permitted to file a further reply within three weeks and raise all jurisdictional and merit-related issues.
The adjudicating authority was directed to fix a fresh date for personal hearing by giving at least 15 days’ notice, after which a reasoned order should be passed. The petitioner also undertook to appear on the dates fixed for hearing.
