SCN Reply Date Should Be Prior to Personal Hearing Date: Allahabad HC

The Allahabad High Court quashed a GST order holding that the date to reply to the show cause notice should be prior to the date of the personal hearing.

The petitioner company, Friends Enterprises, challenged a GST order passed under section 73 of the UP Goods and Services Tax Act, 2017 and an order where its appeal was rejected for being delayed.

The petitioner’s main contention was that the GST order was passed without giving any opportunity for a hearing, and the personal hearing date was prior to the date of filing the reply.

The court referred to the case of Mahaveer Trading Company (supra), where the court had held that the date of reply to the show cause notice has to be prior to the date of the personal hearing. The court had earlier said that cases where the personal hearing date is prior to the date of reply to the notice are invalid, and such acts should be discontinued.

Upholding this decision, the court held that such an order cannot be sustained, and therefore, the GST order as well as the appeal rejection order were quashed. The matter was sent to the assessing authority for fresh consideration after giving a hearing opportunity to the petitioner.