Case Law Details
S.S. Suppliers Vs State of U.P. and Another (Allahabad High Court)
In a recent ruling by the Allahabad High Court in the case of S.S. Suppliers Vs State of U.P. and Another, the significance of disclosing the date, time, and venue of a personal hearing in show-cause notices (SCN) under Section 74(9) of the U.P. GST Act, 2017 has been underscored. This article explores the implications of this ruling and its impact on administrative proceedings.
Importance of Disclosure in SCNs: The crux of the matter lies in the requirement of Section 75(4) of the Act, which mandates that show-cause notices must include details regarding the personal hearing, including the date, time, and venue. Failure to adhere to this statutory provision can render subsequent orders invalid, as demonstrated in the case of S.S. Suppliers.
Judicial Precedent: The judgment references previous rulings by the Allahabad High Court in cases such as M/S Mohini Traders Vs. State of U.P. & Anr. and Mahaveer Trading Company Vs. Deputy Commissioner State Tax & Anr., where similar issues were deliberated upon. These precedents serve to reinforce the importance of disclosing personal hearing details in SCNs to ensure procedural fairness.
Implications for Administrative Proceedings: The ruling in S.S. Suppliers Vs State of U.P. underscores the need for tax authorities to meticulously adhere to procedural requirements when issuing show-cause notices. Failing to disclose essential details of the personal hearing not only violates statutory provisions but also compromises the fairness of the adjudicatory process.
Upholding Procedural Integrity: By setting aside the impugned order and remitting the matter for fresh proceedings, the High Court reaffirms its commitment to upholding procedural integrity and ensuring that litigants are accorded due process. This decision serves as a reminder to administrative authorities to exercise diligence in complying with statutory provisions governing administrative proceedings.
Conclusion: The judgment in S.S. Suppliers Vs State of U.P. serves as a clarion call for adherence to procedural requirements in administrative proceedings. By emphasizing the necessity of disclosing personal hearing details in show-cause notices, the Allahabad High Court reinforces the principles of fairness and due process in the realm of taxation law. Administrative authorities would do well to heed this ruling and ensure strict compliance with statutory provisions to avoid the invalidation of orders on procedural grounds.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Sri Niraj Kumar Singh, learned counsel for the petitioner-assessee and Sri Ankur Agarwal, learned counsel for the revenue.
2. Challenge has been raised to the order dated 17.03.2023 passed by respondent no.2 under Section 74(9) of the U.P. GST Act, 2017 (hereinafter referred to as the ‘Act’). Primarily, it has been submitted, the above order was preceded by show-cause notice dated 01.10.2022 and a reminder notice dated 26.12.2022. However, neither that notice disclosed to the petitioner – the date, time or venue of personal hearing. In such circumstances, it has been vehemently urged, the impugned order has been passed in violation of Section 75(4) of the Act.
3. The above aspect has been considered by a coordinate bench of this Court in M/S Mohini Traders Vs. State of U.P. & Anr. (Writ Tax No. 551 of 2023); Neutral Citation No. – 2023:AHC:115008-DB as also in Mahaveer Trading Company Vs. Deputy Commissioner State Tax & Anr. (Writ Tax No. 303 of 2024); Neutral Citation No. – 2024:AHC:38820-DB.
4. In view of the facts noted above and the earlier decisions of the Court, no useful purpose may be served in keeping the present petition pending or calling for a counter affidavit at this stage.
5. Accordingly, the present writ petition is allowed. The impugned order dated 17.03.2023 is set aside. The matter is remitted to the respondent no.2/Assistant Commissioner, Sector – 8, Varanasi (A) : Varanasi I, Commercial Tax to issue a fresh notice to the petitioner within a period of two weeks from today. The petitioner undertakes to appear before that authority on the next date fixed such that proceedings may be concluded, as expeditiously as possible.
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