GST Orders Quashed for Denial of Personal Hearing; HC Directs Fresh Adjudication After Full Tax Deposit

The High Court of Uttarakhand has provided relief to a taxpayer, Manju, by quashing the GST assessment and appeal orders after she contended that she was denied a proper opportunity of being heard before the finalisation of the tax demand.

The case was a challenge to several actions of the GST department, including the original tax order dated 17 April 2024, the appellate order dated 7 July 2025, an auction notice, a demand notice and a recovery citation. The petitioner submitted that the authorities have violated Section 75(4) of the GST Act, as no date was fixed for a personal hearing.

The State counsel argued that the department had offered a personal hearing to the petitioner at the time of the issuance of the show-cause notice. She decided not to take that option, and the tax order was issued without a hearing. The State further submitted that the appeal of the petitioner was already dismissed due to a delay in filing.

The High Court, while hearing the matter, asked if the petitioner was agreeable to depositing the entire tax amount demanded under the original order. On taking instructions, her lawyer told the court she was prepared to pay the full amount.

The court quashed the tax order and also the appellate order in view of the willingness and the allegation of the petitioner that natural justice had been violated. However, the relief was made conditional upon the petitioner depositing the entire demanded amount within four weeks.

The court directed that after the payment is made, the petitioner must inform the concerned tax authority and provide proof of deposit. The authority will then fix a date for a personal hearing and decide the matter afresh on the merits. The amount deposited will remain subject to the final outcome of the proceedings.

With these directions, the writ petition and all pending applications were disposed of.