Excellence Trades and Services Private Limited Vs State of U.P. and 2 others (Allahabad High Court)
The Allahabad High Court allowed the writ petition challenging the order dated 05.01.2024 passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, whereby a demand of ₹81,58,509 was raised against the petitioner.
The petitioner contended that the show cause notice dated 31.10.2023 specified 30.11.2023 as the last date for filing a reply, while fixing the date of personal hearing as 16.11.2023, which was prior to the deadline for submitting the response. The petitioner submitted its reply on 30.11.2023 and argued that, due to the sequence of dates mentioned in the notice, it had no effective opportunity to seek or avail a personal hearing. Despite this, the respondents proceeded to pass the impugned order raising the tax demand without granting the petitioner an opportunity of hearing.
It was further argued that fixing the date of hearing before the last date for filing a reply rendered the opportunity of hearing an empty formality and amounted to a violation of the principles of natural justice. Reliance was placed on an earlier decision of the Court in M/s Mahaveer Trading Company vs. Deputy Commissioner State Tax and another, where, under similar circumstances, the order had been set aside.
