M/S Jai Vindhya Udyog Thru. Its Partner Niraj Kumar Agarwal Vs State of U.P. (Allahabad High Court)
In the case of Jai Vindhya Udyog Vs State of U.P., the Allahabad High Court addressed the validity of orders passed under the GST Act. The petitioner challenged a demand order dated 29.08.2022 issued under Section 73(9) of the GST Act, claiming it was passed without granting an opportunity for a hearing, as required by Section 75(4) of the Act. The subsequent dismissal of the petitioner’s appeal due to the lapse of the limitation period under Section 107 further complicated the matter. The Court examined the records and noted that neither the original show-cause notice nor the reminder mentioned the date, time, or venue for a personal hearing, instead marking them as “NA.” This omission violated the principles of natural justice and the mandatory provision under Section 75(4).
The Court referred to its previous judgment in Party Time Hospitality Prop. Smt. Punita Gupta Lko. v. State of U.P., reinforcing that granting an opportunity for a hearing is obligatory before an adverse decision. It quashed the demand order and the appeal dismissal order, remanding the matter to the adjudicating authority to pass a fresh order. The Court directed that the petitioner be provided an opportunity to file a reply and be heard in accordance with the law. This judgment underscores the importance of adhering to statutory provisions and natural justice principles in GST proceedings.
