📰 𝗔𝗹𝗹𝗮𝗵𝗮𝗯𝗮𝗱 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗤𝘂𝗮𝘀𝗵𝗲𝘀 𝗗𝗲𝗺𝗮𝗻𝗱 𝗢𝗿𝗱𝗲𝗿 𝗣𝗮𝘀𝘀𝗲𝗱 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝗛𝗲𝗮𝗿𝗶𝗻𝗴 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 📢 The Allahabad High Court emphasized the necessity of observing "Principles of Natural Justice" when passing orders. In this case, the Demand Order issued under Section 74 was quashed due to the absence of a specified date and time for a personal hearing in the Show Cause Notice (SCN).

🔍 𝗙𝗮𝗰𝘁𝘀 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Santosh Traders through Proprietor Santosh Kumar Gonda vs State of Uttar Pradesh 𝗖𝗮𝘀𝗲 𝗡𝗼.: Writ Tax No. 74 of 2023 𝗗𝗮𝘁𝗲: 28-Aug-2023

𝗧𝗶𝗺𝗲𝗹𝗶𝗻𝗲 & 𝗜𝘀𝘀𝘂𝗲𝘀: A Show Cause Notice under Section 74 was issued, allowing a reply submission by 12-Mar-2021, but the SCN lacked a specified date or time for a personal hearing. 18-Mar-2021: The petitioner appeared before the "Proper Officer" and requested additional time to respond. 14-Jul-2021: A demand, as outlined in the SCN, was confirmed without granting the petitioner a hearing. The petitioner’s appeal under Section 107 was dismissed as time-barred. The petitioner then approached the High Court, alleging a violation of natural justice principles.

⚖ 𝗖𝗼𝘂𝗿𝘁 𝗢𝗯𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻𝘀 The court observed that the issuance of a demand order without providing a personal hearing contravenes the principles of natural justice. The SCN’s failure to specify a date or time deprived the petitioner of a fair opportunity to present a defense.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁 The Allahabad High Court quashed the Demand Order, citing its issuance as procedurally flawed and in violation of natural justice principles. The court permitted the GST Department to issue a fresh order, provided it allows the petitioner a proper hearing opportunity.

📜 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 This ruling reinforces that GST authorities must adhere to due process, ensuring taxpayers have a fair hearing before finalizing any demand orders under Section 74. 𝗧𝗲𝗮𝗺 𝗚𝗦𝗧𝗽𝗮𝗻𝗮𝗰𝗲𝗮 7503031378