Ved Enterprises Vs State of U.P. (Allahabad High Court)
The Allahabad High Court considered a writ petition challenging an order dated 24 April 2024 passed under the U.P. GST Act, 2017. The Court examined whether the petitioner had been afforded the mandatory opportunity of personal hearing contemplated under Section 75(4) before an adverse decision was taken.
The Court noted that the notice issued under Section 74 called upon the petitioner to submit a reply. However, the reminder notice recorded “NA” (Not Applicable) against the columns relating to the date, time and venue of personal hearing. The Court therefore concluded that the petitioner had never been afforded an opportunity of personal hearing.
The Court held that failure to respond to the notice could result only in closure of the opportunity to submit a written reply. It could not extinguish the separate right to participate in an oral hearing, which Section 75 expressly required before an adverse decision. According to the Court, the statutory procedure incorporates two independent requirements—submission of a written reply and personal hearing—and failure to avail one opportunity does not result in denial of the other.
On merits, the petitioner’s counsel submitted that a detailed written reply was not required and that the discrepancies in the returns noticed by the adjudicating authority could have been clarified if a personal hearing had been granted.
