Munni Jeneral Store Vs State of U.P. And 2 Others (Allahabad High Court)
In Munni Jeneral Store vs. State of U.P. & Others, the Allahabad High Court addressed a writ petition challenging a GST assessment order dated April 16, 2024. The petitioner contended that the Assistant Commissioner, State Tax, Balia, raised a significant tax demand for the period April 2018 to March 2019 without providing an opportunity for a personal hearing. Despite a statutory mandate under Section 75(4) of the U.P. GST Act, 2017, the notice issued on December 20, 2023, did not include provisions for a hearing, marking “NA” in relevant columns for hearing details. The petitioner argued that this omission violated the principles of natural justice and was contrary to legal precedents set by the High Court in Bharat Mint & Allied Chemicals vs. Commissioner, Commercial Tax and by the Gujarat High Court in M/S Hitech Sweet Water Technologies Pvt. Ltd. vs. State of Gujarat.
The Revenue countered that the petitioner had declined a personal hearing by selecting “No” in the online reply to the show cause notice, thus forfeiting the right to such an opportunity. However, the Court rejected this argument, emphasizing that an opportunity for personal hearing is mandatory when an adverse decision with heavy civil liability is contemplated, irrespective of the petitioner’s initial response. The Court highlighted the principle established in Bharat Mint & Allied Chemicals, which states that authorities must ensure the opportunity for a hearing is real and substantive to uphold natural justice.
