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Judgment
The present writ petition is directed against the order dated 17.07.2025, passed by respondent no.3 under Section 74 of the Uttarakhand Goods and Services Tax Act, 2017, whereby total tax liability of Rs.45,64,844/- (including penalty of Rs.22,82,422/-) has been imposed upon the petitioner firm.
The contention of learned counsel for the petitioner firm is that the Department has passed the impugned order without providing any opportunity of hearing to the petitioner firm, which is a mandatory requirement under Section 75(4) of the Act. He further submits that in similar facts and circumstances, writ petition bearing Writ Petition (M/B) No.702 of 2026, “M/s Shivtara Developers vs. State of Uttarakhand & others”, challenging order under Section 74 of the Act, had been allowed and the impugned order therein has been quashed.
Ms. Puja Banga, learned Standing Counsel for the Revenue, however, submits that the petitioner firm had not opted for personal hearing and, therefore, it was not provided to the petitioner firm.
UKHC010168872026
Section 75(4) of the Act reads as follows:-
“An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”
It has been repeatedly held by this Court and by various other High Courts that even if the assessee had not opted for personal hearing, in case, the revenue proposes to pass an adverse order, it is obligatory on its part to afford personal hearing to the assessee. The same view was taken by this Court while deciding the Writ Petition (M/B) No.702 of 2026.
In view of the above, the impugned order is, hereby, quashed. It shall be open to the Department to pass a fresh order after providing opportunity of hearing to the petitioner firm.
Pending application, if any, also stands disposed of.