IMPORTANT POINT
The court established that under Section 75(4) of the UPGST Act, a personal hearing is mandatory when an adverse decision is contemplated, and failure to provide such a hearing constitutes a violation of natural justice.

JUDGMENT :

(Hon'ble Mrs. Sangeeta Chandra, J.) :

1. Heard Sri Rahul Agarwal alongwith Sri Utkarsh Malviya, learned counsel for the petitioner and Sri Rajesh Tiwari, learned Additional Chief Standing Counsel for the State-respondents.

2. This petition has been filed with the following main prayers:-

"Issue a Writ, Order or Direction in the nature of Certiorari quashing the impugned Order passed u/s 74 of the Uttar Pradesh Goods & Service Tax Act, 2017 bearing Reference No.ZDO90224180025M dated 19.02.2024 issued in FORM GST DRC-1 a/w the Rectification Order bearing Ref. No.ZD0904244094478 dated 27.04.2024 issued in FORM GST DRC-08, by the Respondent no.2 (Annexure no.1).

(2) Issue a Writ, Order or Direction in the nature of certiorari quashing the impugned Show Cause Notice issued to the petitioner u/ s 74 of the UPGST Act vide Reference No. ZD090823132533D dated 07.08.2023 issued in FORM GST DRC-01 by Respondent no.2 (Annexure No.2)."

3. It is the case of the petitioner that the company was registered under Uttar Pradesh Goods and Services Tax Act, 2017 (for short 'the Act'). An audit notice was issued to the petitioner on 05.05.2022 vide FORM GST ADT-01 by the Joint Commissioner (Tax Audit), Commercial Tax, Lucknow, requiring the petitioner to produce books of accounts and present its case regarding due discharge of tax liabilities. A survey of the premises of the petitioner was conducted by the Revenue Officials on 11.05.2022. Another notice was issued in FORM GST ADT-01 to the petitioner on 05.01.2023 on similar grounds. The petitioner claims to have complied with all the directions issued by the respondents, however, it was not given any information regarding the action taken in furtherance of audit notices dated 05.05.2022 and 05.01.2023 by the respondent authorities. As per the provisions of Section 65(4) of the Act, if the respondents failed to complete the audit exercise after the lapse of three months from the date of audit, unless the said period has been explicitly extended, it shall be deemed to have concluded upon expiration of the said period. No draft audit report was prepared or issued to the petitioner in FORM GST ADT-02. A show cause notice was issued to the petitioner on 07.08.2023 relying upon the audit FORM GST ADT-01, that were issued on 05.05.2022 and on 05.01.2023. No audit report was ever issued to the petitioner.

4. The impugned show cause notice does not provide any date, place and time of hearing despite the same being mandatory procedure. In the Columns specified for date, place and time of hearing, the show cause notice mentions NA (not applicable) thereby denying the petitioner any opportunity of hearing. The petitioner submitted its reply on 06.11.2023 and in the said reply, the petitioner has specifically prayed that it may be given personal hearing, if the officer is not satisfied with the written explanation given in reply to the show cause notice.

5. Learned counsel for the petitioner has argued that despite the mandate of Section 75(4) of the Act providing personal hearing and despite the petitioner specifically asking for personal hearing, no opportunity of personal hearing was granted and the impugned order was passed in violation of the settled principles of natural justice.

6. Learned counsel for the petitioner to substantiate his argument, has read out the provisions of Section 75(4) of the Act and has placed reliance upon three judgements of Co-ordinate Benches of this Court in Writ-Tax No.1029 of 2021: Bharat Mint & Allied Chemicals Vs. Commissioner, Commercial Tax & others, (2022) Vol.48 VLJ 325, decided on 04.03.2022; Writ Tax No.551 of 2023: M/s Mohini Traders Vs. State of Uttar Pradesh and another, decided on 03.05.2023 and Writ Tax No.44 of 2024: M/s Mahendra Educational Pvt. Ltd. Vs. State of U.P., decided on 05.03.2024, copies of such orders passed by Co-ordinate Benches have been collectively filed as Annexure No.9 to the writ petition.

7. Learned Counsel appearing on behalf of th