Abuturrab Agencies Vs Commissioner, State Tax and another (Uttarakhand High Court)
The Uttarakhand High Court allowed a writ petition challenging an assessment order dated 21 August 2024 passed under Section 73(9) of the CGST Act/UKGST Act. The impugned order had raised a demand of ₹7,97,278 towards tax, along with interest of ₹7,49,442 and penalty of ₹79,728, aggregating to ₹16,26,448.
The petitioner contended that the show cause notice issued on 9 May 2024 granted time until 9 June 2024 for filing a reply. However, the same notice fixed the date of personal hearing on 27 May 2024, which was prior to the last date prescribed for submitting the reply. According to the petitioner, such a procedure was wholly illegal, as an effective opportunity of hearing could not be provided before the expiry of the period allowed for filing objections.
The petitioner further submitted that the show cause notice had not been served through any physical mode and had only been uploaded on the GST portal, due to which the petitioner was unaware of the proceedings.
Reliance was placed on an earlier judgment of the Coordinate Bench in M/s Modine Thermal Systems Private Limited v. State of Uttarakhand and others, wherein it was observed that the scheme of Sections 73, 74 and 75 of the GST enactments contemplates a meaningful opportunity of hearing. The Court had held that where a statute prescribes a particular manner for performing an act, it must be performed only in that manner. The provisions of Section 75 also recognize the assessee’s right to seek adjournments, subject to statutory limitations.
