Native Estate Pvt. Ltd Vs U.O.I. Thru. Secy. Ministry Of Finance (Allahabad High Court)
Allahabad High Court has quashed an assessment order and a subsequent appellate order against Native Estate Pvt. Ltd., ruling that the petitioner was not afforded a proper opportunity of hearing before the initial Goods and Services Tax (GST) order was passed.
Native Estate Pvt. Ltd. had challenged an order dated August 22, 2024, issued under Section 73 of the GST Act, and a subsequent appellate order dated March 28, 2025, which had dismissed their appeal on grounds of limitation.
The petitioner’s counsel argued that a fundamental procedural flaw occurred: no opportunity for a personal hearing was provided before the Section 73 order, which deals with tax not paid or short paid without fraud. The State’s counsel, relying on instructions, conceded that while a second reminder notice did offer a proper hearing date, an earlier reminder had fixed a hearing date before the reply was even filed. Crucially, the initial notice did not specify a hearing date.
The High Court, observing that a “proper opportunity of hearing was not granted,” allowed the petition. It quashed both the Section 73 order and the appellate order, remanding the matter back to the assessing authority. The authority is now directed to issue a fresh order after providing Native Estate Pvt. Ltd. with a due opportunity of being heard, in accordance with the law. This ruling reinforces the principle of natural justice, requiring a fair hearing even in tax assessment proceedings. While no specific judicial precedent was cited, the decision aligns with established legal principles requiring due process.
