Priya Enterprises Vs State of U.P. and another (Allahabad High Court)
Allahabad High Court has set aside a Goods and Services Tax (GST) demand order issued against M/s Priya Enterprises for the period of April 2020 to March 2021. The Court’s ruling, delivered on February 28, 2025, found that tax authorities failed to provide the petitioner a mandatory opportunity for a personal hearing before issuing the adverse order under Section 73 of the U.P. GST Act, 2017.
The case originated when Priya Enterprises was flagged for discrepancies in its tax returns following a scrutiny conducted under Section 61 of the Act. The company submitted a reply to the initial notice on September 28, 2024. Finding this reply unsatisfactory, the Assistant Commissioner – I, Dhampur, issued a show cause notice under Section 73, requiring a response by December 28, 2024, and scheduling a personal hearing for January 3, 2025.
Priya Enterprises eventually filed its reply to the show cause notice on January 17, 2025, after the initially scheduled personal hearing date. Subsequently, without rescheduling or offering another opportunity for a personal hearing, the Assistant Commissioner proceeded to pass the final demand order on February 28, 2025, under Section 73(9) of the Act, creating a tax liability against the petitioner.
