GST Ex-Parte Order Quashed: Allahabad HC Rules SCN Defective for Mentioning "N/A" in Place of Personal Hearing Date [Read Order]
The court observed that the SCN was wrong at the time of initiation itself by applying the principles laid down in the coordinate bench ruling.
![GST Ex-Parte Order Quashed: Allahabad HC Rules SCN Defective for Mentioning N/A in Place of Personal Hearing Date [Read Order]](https://images.taxscan.in/h-upload/2025/12/06/2110484-gst-ex-parte-order-scn-personal-hearing-date-taxscan.webp "GST Ex-Parte Order Quashed: Allahabad HC Rules SCN Defective for Mentioning N/A in Place of Personal Hearing Date [Read Order]")
on a petitioner and held that the original Show Cause Notice (SCN) was defective for failing to mention the date, time, and place The Allahabad High Court quashed an ex-parte order that had imposed tax, interest, and penalty of the personal hearing. The court found that this constituted a violation of the principles of natural justice. Kisan Traders (petitioner), through...
on a petitioner and held that the original Show Cause Notice (SCN) was defective for failing to mention the date, time, and place The Allahabad High Court quashed an ex-parte order that had imposed tax, interest, and penalty of the personal hearing. The court found that this constituted a violation of the principles of natural justice.
Kisan Traders (petitioner), through its Proprietor Shyam Singh, filed a writ petition under Article 226 of the Constitution of India challenging an impugned order dated April 26, 2024, which had imposed a total tax, interest, and penalty of ₹6,75,552 under Section 73(9) of the GST Act, 2017, for the financial year 2018-19.
The Petitioner also sought to quash the preceding Show Cause Notice dated December 22, 2023. The counsel for the petitioner submitted that the very initiation and the first show cause notice were improper.
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The counsel highlighted that the date of personal hearing must be mentioned, but the notice only mentioned "N.A." without specifying any date, time, or place for the hearing. The counsel argued that the authorities had not issued a proper notice and the subsequent proceeding was bad in law.
The bench comprising Justice Shekhar B. Sarafand Justice Manjive Shukla, relied on a coordinate Bench judgment of the court in the case of Mahaveer Trading Company vs. Deputy Commissioner State Tax.
The court observed the Mahaveer Trading Company judgment, which had previously noted similar defective SCNs where the columns for the date and time of personal hearing mentioned "N.A.".
The court observed that before any adverse order is passed in an adjudication proceeding, personal hearing must be offered. The Mahaveer Trading Company case concluded that such an order "cannot be sustained in the eyes of law" as it is a "gross violation of fundamental principles of natural justice".
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The court observed that the SCN was wrong at the time of initiation itself by applying the principles laid down in the coordinate bench ruling. As the authorities failed to issue a fresh show cause notice in accordance with law, the court concluded that the principles of natural justice were violated.
The bench noted that although the writ petition was filed after the statutory period of limitation for appeal, the court can intervene in exceptional cases where there is a violation of principles of natural justice.
The court quashed and set aside the ex-parte order dated April 26, 2024. The Department was granted the liberty to issue a fresh show cause notice and proceed with the matter in accordance with law. The petition was allowed.
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