GST Update

Desk of CA. Praveen Sharma – 851 Series (CAPS)

Allahabad High Court in the case of Nova Homa Care Thru. Proprietor Sanjeev Jaiswal

The petitioner challenged the GST order dated 11.12.2023 under Section 73 and the subsequent appeal rejection dated 09.09.2025 for being time-barred.

It was argued that the order was passed without granting any personal hearing, violating the principles of natural justice.

The petitioner relied on the Allahabad HC ruling which emphasized that a personal hearing is mandatory before passing an adverse order.

The State’s counsel admitted that no specific date for hearing was fixed in this case.

The Court reiterated that Section 75(4) of the CGST Act obliges authorities to give an assessee a chance of being heard when any adverse decision is contemplated.

The Court cited the Commissioner’s Memo No. 1406 dated 12.11.2024, instructing officers to ensure proper mention of hearing dates and discontinuation of the “N.A.” practice.

Applying the Mahaveer Trading precedent, the Court quashed both orders, allowed the writ petition, and remanded the matter to the assessing officer for a fresh decision after due hearing.

Link: CA. Praveen Sharma on Linkedin

Regards
CAPS