GST Order Holding Petitioner Guilty Passed Without Application of Mind Quashed by HC

The petitioner, M/S V.K. Pustak Bhandar and Stationers, represented through its proprietor Vinod Kumar Shukla, received a GST order dated 31.08.2024 under section 73 of the GST Act, against which the petitioner filed an appeal. However, the same was rejected in the order dated 18.03.2025, as the appeal was filed late. Therefore, the petitioner filed an appeal with the High Court to challenge both the orders dated 31.08.2024 and 18.03.2025.

Argument of petitioner

The learned Counsel of the petitioner submitted that the petitioner had timely replied to the show cause notice issued before passing the final order. But the personal hearing was missed because the petitioner was not doing well. He further added that the tax officer did not consider the reply of the petitioner, only because the petitioner failed to attach documents as proof in the reply.

Allahabad HC Decision

The court observed that the petitioner had submitted a reply, but the tax officer did not properly consider it. Not considering the reply just because documents were missing is unacceptable. The assessing authority could have directed the petitioner to file documents. The order passed under section 73 was passed by the tax officer without applying their mind. Therefore, the High Court set aside both the orders dated 31.08.2024 and 18.03.2025 as there was a violation of natural justice. The court remanded the matter to the assessing authority to pass a fresh order after giving the petitioner a chance to represent himself.

The court granted the petitioner 10 days to file all supporting evidence and clarified that no further time or notice would be provided to the petitioner.