Sai Dham Residency Vs State of U.P. and Another (Allahabad High Court)
Allahabad High Court has set aside an adverse order issued against Sai Dham Residency under the U.P. Goods and Services Tax Act, 2017, due to the denial of a personal hearing. The court emphasized that Section 75(4) of the Act mandates providing an opportunity for personal hearing before any adverse decision is taken against a registered person.
The petitioner received a notice under Section 73(1) of the Act dated January 16, 2024, which called for a reply but explicitly marked “NA” (Not Applicable) for personal hearing details. The High Court found this to be a clear procedural deficiency. It highlighted that natural justice principles embedded in the statute require both a written reply opportunity and an oral hearing. Failure to avail one does not negate the right to the other.
The court concluded that the impugned order dated April 25, 2024, was passed contrary to mandatory procedure. Consequently, it remitted the matter back to the respondent (Proper Officer) to pass a fresh, reasoned order after granting the petitioner a final opportunity to submit a reply within two weeks and then appearing for a personal hearing. This decision underscores the critical importance of a personal hearing in GST adjudication.
