Kahna Bartan Bhandar Vs State of U.P (Allahabad High Court)
Allahabad High Court has quashed a Rs. 50,000 penalty imposed under Section 125 of the CGST/SGST Act against Kahna Bartan Bhandar, along with the subsequent appellate order upholding it. The court found a significant procedural flaw in the initial show-cause notice (SCN): the date for filing a reply and the date for personal hearing were scheduled for the exact same day.
Representing the petitioner, counsel Sri Manas Shukla argued that this practice violates a “well-settled proposition of law through catena of judgments of this Court” (though no specific judicial precedents were named in the immediate order). The court acknowledged that the SCN indeed set September 17, 2024, as both the deadline for reply submission and the date for personal hearing.
The High Court deemed this arrangement a clear denial of a proper opportunity for the petitioner to be heard. Consequently, the court allowed the writ petition, setting aside both the original penalty order dated September 20, 2024, and the appellate order dated April 5, 2025. The matter has been remanded back to the assessing authority to issue a fresh order in accordance with the law, ensuring the petitioner is provided with a proper opportunity for hearing.
