NS Agro And Engineering Products Vs State of U.P. and Another (Allahabad High Court)
The Allahabad High Court has recently set a significant precedent in the case of NS Agro and Engineering Products Vs State of U.P. and Another, emphasizing the necessity of granting personal hearings to taxpayers during adjudication proceedings under the Central Goods and Services Tax (CGST) Act, 2017. This judgment underscores the critical importance of adhering to procedural law, particularly the principles of natural justice, in tax matters. The court’s decision to propose heavy costs and disciplinary actions against erring GST officers highlights the judiciary’s stance on ensuring fair administrative practices.
Case Background
The case involves a challenge against an order dated 19.08.2021, issued by the Deputy Commissioner of the Commercial Tax Department in Sikandrabad, Bulandshahar. The petitioner contended that the order was passed in violation of Section 75(4) of the CGST Act, which mandates an opportunity for a personal hearing when requested or when an adverse decision is anticipated. The State’s counsel initially raised an objection based on the availability of an appeal under Section 107 of the CGST Act. However, the petitioner argued that this procedural safeguard was bypassed, rendering the adjudication process fundamentally flawed.
