Order Date – 06 May 2025

Parties: M/s Amar Agencies vs. State of U.P. & 3 Others

Facts –

• The Petitioner, M/s Amar Agencies, was served with a show cause notice to which they responded with a request for personal hearing.
• However, the adjudicating authority passed the order without granting personal hearing, violating Section 75(4) of the GST Act.
• The petitioner appealed the decision. The appellate authority noted the counsel’s initial appearances but later absence, and dismissed the appeal for lack of evidence without discussing it on merits.

Issue –

• Whether the order passed under Section 73 without granting personal hearing, despite a specific request, is valid?

Order –

• The Hon’ble High Court observed that In terms of the mandate of Section 75(4) of GST Act, it is incumbent to grant an opportunity of hearing even if the same is not asked for, as such, the order under Section 73 of GST Act is in violation of principles of natural justice as well as against the mandate of Section 75(4) of GST Act.
• The appellate order, although, records the submission made in the memo of appeal, however, does not deal the same on merits and record that the appellant has failed to adduce any evidence. The said manner of adjudication cannot be termed as justified in view of the mandate of Section 107(12) of GST Act. 
• Thus, finding the impugned orders dated 28.12.2023 & 23.12.2024 to be short of requirements of the mandatory provisions, the same cannot be sustained and are quashed.