Allahabad High Court Quashes GST Order Passed Without Proper Hearing

The Allahabad High Court has given important relief to a business firm by setting aside a GST order that was passed without giving a proper hearing.

The petitioner, M/s Shree Ganesh Sales, challenged a GST order passed by the GST Department, claiming that it was passed ex parte.

Even though a date was fixed for the hearing, the tax authority did not pass an order on that date. Additionally, the authority did not even communicate any fresh notice to the petitioner. Due to this, the petitioner firm could not explain its side.

The Court ruled that once a hearing date is fixed, the authority must either pass the order on that day or schedule a new date and inform the taxpayer about it. Failing to do so makes the final order ex parte, violating the principles of natural justice.

The Court relied on an earlier ruling case of M/s Shubham Steel Traders (supra), where a similar issue was decided in favor of the taxpayer. Considering these facts, the High Court quashed the impugned GST order. The GST department was directed to pass a new order after giving the petitioner a fresh opportunity for a personal hearing.