Swiftline Transport Solutions Private Limited Vs State of U.P. and Another (Allahabad High Court)
The Allahabad High Court has nullified a tax order against Swiftline Transport Solutions Private Limited, ruling that an ex-parte order is void if the taxpayer is not given a proper opportunity for a hearing. The writ petition filed by the company challenged an order dated August 20, 2024, issued under Section 73 of the UPGST/CGST Act for the financial year 2019-2020. The company also sought to quash the preceding show-cause notice.
The Court reviewed the show-cause notice and found a critical procedural flaw: the date set for the personal hearing was June 19, 2024, which was before the June 22, 2024, deadline for submitting a reply. Since the company was not afforded a fair chance to present its case, the Court concluded that the subsequent ex-parte order could not be legally sustained.
The Court, therefore, quashed and set aside the tax order, directing the company to submit a fresh reply to the notice within two weeks. Following this, the tax authority must issue a new notice for a personal hearing and complete the entire process within twelve weeks. This judgment reinforces the principle of natural justice, which requires authorities to provide a fair and reasonable opportunity to be heard before passing an adverse order.
