V.K. Pustak Bhandar And Stationers Vs State of U.P (Allahabad High Court)
Allahabad High Court has set aside a Goods and Services Tax (GST) order issued under Section 73 and its subsequent appellate order, citing a violation of natural justice. The ruling came in the case of V.K. Pustak Bhandar And Stationers vs. State of U.P., where the petitioner challenged an order dated August 31, 2024, and an appeal dismissal dated March 18, 2025, which was rejected as time-barred.
The petitioner contended that while a reply to the show cause notice was submitted, it was not adequately considered by the assessing authority. The primary reason for rejecting the reply, as stated in the impugned order, was the absence of supporting documents. Furthermore, the petitioner claimed no personal hearing could be granted due to illness.
The Standing Counsel, representing the state, informed the court that a reminder was issued, fixing August 4, 2024, for reply submission and August 6, 2024, for a personal hearing, but no one appeared for the hearing.
Upon review, the High Court found the assessing authority’s rejection of the reply solely due to lack of annexed evidence “prima facie not acceptable.” The court observed that the authority could have directed the petitioner to furnish the necessary evidence. It concluded that the Section 73 order lacked “specific application of mind” to the defense presented, thus violating principles of natural justice.
