Star Enterprises Vs State of U.P. (Allahabad High Court)
The Allahabad High Court has quashed a Goods and Services Tax (GST) order against Star Enterprises, remanding the matter for fresh consideration after finding that the petitioner was denied a fair hearing. The High Court’s ruling in Star Enterprises vs. State of U.P. addresses a significant procedural lapse where a show cause notice (SCN) for hearing was allegedly uploaded in an “additional tab” on the GST portal, rather than the designated notices tab. This misplacement led to the petitioner missing the hearing date and consequently being unable to present their case.
The petitioner challenged both an appellate order dated February 27, 2023, and an initial order dated May 20, 2022, issued under Section 74 of the GST Act, both of which were passed without granting an opportunity for a hearing. Counsel for Star Enterprises argued that the notice for hearing was published incorrectly, and notably, the hearing date for the Section 74 order was fixed prior to the deadline for submitting a reply. The learned Standing Counsel for the State did not dispute the notice’s timing conflict. Recognizing the procedural infirmities and the denial of due process, the High Court determined that no useful purpose would be served by merely directing another appeal. Instead, the Court quashed both impugned orders and directed the assessing authority to issue a fresh order after affording the petitioner a proper opportunity for a hearing. This judicial precedent underscores the necessity for strict adherence to procedural fairness in GST proceedings.
