Bombay HC Quashes GST Order for Denial of Hearing and Section 74A Breach

Hind Maha Mineral LLP Vs State of Maharashtra (Bombay High Court)

Summary: The Bombay High Court, Nagpur Bench, considered Writ Petition No. 2973/2026 filed by Hind Maha Mineral LLP challenging an order dated 5 January 2026 and a rectification order of the same date. The first order had been passed under Section 74A(5) of the Central Goods and Services Tax Act, 2017. The petitioner contended that while passing the order, respondent No. 3 had not granted an opportunity of hearing as required under Section 75(4) of the Central Goods and Services Tax Act, 2017. The Court noted that Section 75(4) requires an opportunity of hearing where a request is received in writing from the person chargeable with tax or penalty or where an adverse decision is contemplated.

The respondents contended that a hearing had been given, but the petitioner clarified that the hearing held on 16 October 2025 related to a different matter concerning mismatch of input tax credit. The Court recorded that the notice in the present matter was issued on 11 November 2025 and that no opportunity of hearing was given thereafter; the notice itself indicated that personal hearing was not applicable. The Court consequently held the impugned order unsustainable for want of hearing. The second challenge concerned clause (ii) of sub-section (8) of Section 74A, under which tax together with interest payable under Section 50 could be paid within 60 days of issuance of the show cause notice, with no penalty payable and the proceedings deemed concluded upon such payment. The judgment records an inconsistency in paragraph 8, where the notice is stated as having been issued on 11 November 2026, although paragraph 6 records the notice date as 11 November 2025.