Case Details: Kahna Bartan Bhandar Versus State of U.P. (2025) 32 Centax 15 (All.)
Judiciary and Counsel Details
- Manjive Shukla, J.
- S/Shri Manas Shukla, Anurag Srivastava & Ashish Kumar Tripathi for the Petitioner.
Facts of the Case
The Petitioner challenged the imposition of a penalty under Section 125 of the CGST Act read with the Uttar Pradesh GST Act, pursuant to an order passed by the jurisdictional authority. The penalty of ₹50,000 was levied following the issuance of a show cause notice wherein the date prescribed for filing the reply and the date fixed for personal hearing were identical. The Petitioner contended that such simultaneous scheduling denied a fair and reasonable opportunity to respond and present oral submissions, thereby violating principles of natural justice. The matter was accordingly placed before the High Court of Allahabad.
High Court Held
The Allahabad High Court held that the assessee had not been afforded a proper opportunity of hearing, as the date for filing a reply and the date for personal hearing being the same effectively foreclosed any meaningful chance to be heard. Accordingly, the Court quashed both the original penalty order and the appellate order, and remanded the matter to the assessing authority for fresh adjudication in accordance with law.
