Siddh Sales Corporation Vs State of UP and 2 Others (Allahabad High Court)
Introduction: In the legal battle between M/S Siddh Sales Corporation and the State of Uttar Pradesh (UP), the former contested an adjudication order, citing its ex-parte nature under Section 73 of the UP GST Act, 2017. Allegations of improper notice and lack of a hearing prior to the order’s issuance formed the crux of the petitioner’s argument.
Fact of the case: M/S Siddh Sales Corporation challenged an adjudication order, alleging its ex-parte nature, under Section 73 of the UP GST Act, 2017, read with Rule 142(5) of the Rules framed thereunder. The petitioner contended that they were not provided with proper notice to file a reply, nor were they served with a prior notice of the hearing before the impugned order was passed.
Court Finding: Upon reviewing the submissions, the court required the learned Standing Counsel to obtain written instructions. Although earlier instructions suggested that the impugned order was passed after affording due opportunity to the petitioner, further scrutiny revealed irregularities in the proceedings. The order sheet displayed deficiencies, including missing entries of hearing dates and a lack of communication of notices to the petitioner.
Acknowledging the gravity of adjudication orders and their potential civil consequences, the court deemed the proceedings conducted by the respondent authorities as wholly irregular and contrary to the provisions of law. Consequently, the court set aside the impugned order and provided directions for the petitioner to treat it as a final show-cause notice, allowing them to furnish a detailed reply within two weeks.
