New Makhan Bhog Vs State Of Up And 2 Others (Allahabad High Court)
Introduction: In a significant ruling, the Allahabad High Court addressed procedural lapses under the Uttar Pradesh Goods and Services Tax (UP GST) Act, 2017, in the case of New Makhan Bhog vs State of UP and Others. The court quashed an order passed under Section 74 of the UP GST Act, citing the absence of a personal hearing, and directed a de novo assessment. This judgment underscores the importance of adhering to principles of natural justice in tax adjudications.
Detailed Analysis: The case revolves around an order dated February 22, 2023, passed by the respondent under Section 74 of the UP GST Act, which was subsequently upheld on appeal on January 16, 2023. New Makhan Bhog, represented by their counsel Sri Shubham Agrawal, argued that the order was passed without granting an opportunity for a personal hearing, thereby violating the principles of natural justice.
Arguments by the Petitioner:
1. Violation of Natural Justice: The petitioner contended that the assessment order was issued without providing a personal hearing, as required under Section 75(4) of the UP GST Act. This lack of procedural fairness was a primary ground for their appeal.
2. Best Judgment Assessment: The petitioner relied on the precedent set in M/s Diamond Steel vs State of UP, where the court ruled that a best judgment assessment is impermissible under Section 74. The petitioner argued that the assessment was conducted similarly, without proper basis or justification.
Respondent’s Position: The State’s counsel, Sri Ravi Shankar Pandey, defended the orders passed by the tax authorities and argued against the court’s interference. The respondent sought additional time to file a counter affidavit, which the court deemed unnecessary given the clear legal issues involved.
