Sri Ganesh Sales Vs State of U.P. and Another (Allahabad High Court)
In the case of Sri Ganesh Sales vs. State of U.P. and Another, the Allahabad High Court quashed a GST order issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, for the tax period April 2020 to March 2021. The petitioner challenged the order on grounds of procedural violations, particularly the denial of a proper opportunity for a personal hearing. The Court noted that the adjudication process violated principles of natural justice, as highlighted in a prior case, Mahaveer Trading Company vs. Deputy Commissioner State Tax. Similar deficiencies, such as inadequate notice of hearings and improperly scheduled procedural steps, were observed in both cases.
The Court emphasized that any adverse order in adjudication proceedings must be preceded by a proper opportunity for personal hearing. If the taxpayer waives this right or fails to attend despite being given the opportunity, only then can an ex-parte decision be justified. Denying this fundamental right undermines the fairness of the process. Consequently, the Court annulled the impugned order and directed the tax authority to allow the petitioner to submit a fresh reply, schedule a proper hearing, and issue a reasoned decision within two months. This judgment underscores the importance of adhering to procedural fairness in GST adjudications.
