HC Quashes GST Assessment Order for Lack of Hearing, Remands Matter to AO for Fresh Consideration
HC Quashes GST Assessment Order for Lack of Hearing, Remands Matter to AO for Fresh Consideration
Many times, taxpayers are not even given a proper chance to represent their side before issuing the final orders. Now the question is, is it fair? In this case, too, the petition is challenging an order issued without giving an opportunity for a hearing.
The present judgment is titled Ventura Sales and Services Pvt. Ltd. vs. Addl. Commissioner Grade-II Appeal State Tax Judicial Division III, Lucknow and Another, heard by the Allahabad High Court. The case was decided on July 15, 2025. Ventura Sales and Services Pvt. Ltd. is the petitioner in this case, and the Additional Commissioner of State Tax (Appeals) and another State GST authority are respondents.
The company filed this writ petition (No. 619 of 2025) to challenge two orders issued by the respondents, one dated 18.12.2023 passed under Section 73 of the GST Act (this section deals with tax demands when the government believes there has been non-payment or under-payment of tax, without fraud) and the other dated 02.07.2025, issued to reject the appeal raised by the appellant to challenge the above order. The appeal was rejected because it was filed after the due date, set as per the law, called “beyond limitation period”, in law terms.
The lawyer of the company argued that the initial order dated 18.12.2023 is illegal, as it was issued without giving an opportunity for a hearing, which is against the principles of natural justice. The lawyer of the respondent said that, in the notice issued to the company, a date for the hearing was mentioned, but that date came before the date on which the company submitted its reply. So essentially, the hearing was scheduled before the company could even defend itself, which is not proper.
The lawyer of the company also referred to an earlier judgement titled Mahaveer Trading Company vs. Deputy Commissioner, State Tax, in which the high court quashed the order, as the initial SCN mentioned the date of hearing before the reply was filed, which violates the right to be heard properly and goes against the principles of natural justice.
The High Court agreed with the arguments of the petitioner and followed the same reasoning as in the Mahaveer Trading Company case. Therefore, it quashed both the orders dated 18.12.2023 and 02.07.2025. Sent the case back to the Assessing Officer (AO) for fresh consideration and directed it to pass a fresh order after giving a proper and fair hearing to the company.