Case Details: Apollo Engineers vs. State of Gujarat (2025) 35 Centax 147 (Guj.)
Judiciary and Counsel Details
- Bhargav D. Karia & Pranav Trivedi, JJ.
- Shri Uchit N Sheth, Adv., for the Petitioner.
- Ms Shrunjal Shah, AGP, for the Respondent.
Facts of the Case
The petitioner’s GST registration had been cancelled for non-commencement of business. Thereafter, a show cause notice in Form GST DRC-01 was issued under section 73 of the CGST Act proposing disallowance of input tax credit on account of mismatch between GSTR-3B and GSTR-2A/2B. The petitioner submitted that since the notice was uploaded on the portal after cancellation of registration, it could not be accessed or responded to. It was further contended that no personal hearing was afforded before issuance of the demand order, resulting in a violation of section 75(4) of the CGST Act which mandates an opportunity of hearing. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the order passed by the adjudicating authority was in breach of section 75(4) of the CGST Act as no opportunity of personal hearing had been provided prior to adjudication. It observed that once registration was cancelled, uploading the show cause notice on the portal could not be treated as effective service, thereby depriving the petitioner of a reasonable opportunity to contest the proceedings. The Court held that the impugned order suffered from violation of principles of natural justice and was unsustainable in law. Accordingly, the order was quashed and the matter remanded to the jurisdictional authority for de novo adjudication after granting the petitioner due opportunity of hearing and to file a reply to the show cause notice.
