S.73 GST Order Rejected Petitioner’s Reply Without Considering Evidence: Allahabad HC Quashes Order for Violating Natural Justice [Read Order]
The Court held that the assessing authority should have granted an opportunity to submit the necessary evidence, and found the order to be passed without proper application of mind.
![S.73 GST Order Rejected Petitioner’s Reply Without Considering Evidence: Allahabad HC Quashes Order for Violating Natural Justice [Read Order]](https://images.taxscan.in/h-upload/2025/07/10/2062493-gst-order-rejected-petitioners-considering-evidence-allahabad-hc-quashes-order-violating-natural-justice.webp "S.73 GST Order Rejected Petitioner’s Reply Without Considering Evidence: Allahabad HC Quashes Order for Violating Natural Justice [Read Order]")
The High Court of Allahabad, quashed an order passed under Section 73 of the Goods and Service Tax ( GST ) Act,2017, for rejecting the petitioner’s reply without considering the evidence, holding that it amounted to a violation of natural justice. V. K. Pustak Bhandar, petitioner-assessee, challenged the order dated 31.08.2024 issued under Section 73 of the GST Act, along with...
The High Court of Allahabad, quashed an order passed under Section 73 of the Goods and Service Tax ( GST ) Act,2017, for rejecting the petitioner’s reply without considering the evidence, holding that it amounted to a violation of natural justice.
V. K. Pustak Bhandar, petitioner-assessee, challenged the order dated 31.08.2024 issued under Section 73 of the GST Act, along with the appellate order dated 18.03.2025, which had rejected the appeal on the ground of limitation.
The assessee counsel stated that a show cause notice had been served prior to the order passed under Section 73 of the GST Act, and a reply had been submitted in response. However, the petitioner could not attend the hearing due to illness.
It was contended that the reply was not considered in the impugned order, mainly on the ground that supporting documents were not enclosed.
On the other hand, the standing counsel submitted, based on instructions taken on record, that the matter had been fixed for submission of the reply on 04.08.2024, and the personal hearing was scheduled for 06.08.2024. Though a reply had been filed, no one had appeared for the hearing.
The Court noted that although the petitioner had submitted a reply to the show cause notice, the reply was rejected only because supporting documents were not attached. It found this reason unacceptable, as the assessing authority could have asked the petitioner to provide the necessary evidence.
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Justice Pankaj Bhatia observed that the order under Section 73 seemed to hold the petitioner guilty without properly considering the defence and lacked application of mind. It held that the order did not meet the requirements of natural justice.
As a result, the Court quashed the order dated 31.08.2024 and also set aside the appellate order dated 18.03.2025. The matter was sent back to the assessing authority for a fresh decision after giving the petitioner a proper hearing.
The petitioner was allowed to submit evidence within 10 days and was directed to appear before the authority on 16th July 2025 at 11:00 AM. The bench clarified that no further time or notice would be given. The petition was disposed of.
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