Chandani Tent Traders v. State of U.P. (Allahabad High Court)
Summary: In Chandani Tent Traders v. State of U.P. (Writ Tax No. 1084/2024), the Allahabad High Court ruled that passing an order without granting a hearing violates the principles of natural justice. The petitioner, whose GST registration was canceled, argued that they had not received any notice of the cancellation, which was done ex parte. The court held that such actions fail to meet the basic requirements of natural justice, referencing a prior ruling in Chemsilk Commerce (P.) Ltd vs. State of U.P., where a similar issue arose. In that case, it was determined that the onus is not on taxpayers to monitor GST portals for notices if no physical notice is issued. The impugned order was quashed, and the petitioner was granted an opportunity to be heard. The court emphasized the importance of procedural fairness, aligning its decision with precedents such as R.B. Traders v. Deputy Commercial Tax Officer by the Madras High Court. There, it was similarly held that denying an opportunity for personal representation violates natural justice. Following this rationale, the Allahabad High Court reiterated that orders passed without hearing affected parties are invalid. The decision underscores the judiciary’s role in ensuring procedural compliance in administrative actions and safeguarding taxpayer rights.
