GST Show Cause Notice Challenge Dismissed: Petitioner Granted Personal Hearing with Opportunity to Submit Additional Evidence

HC dismissed the GST show cause notice challenge, directing a personal hearing for the petitioner. The court instructed respondents to consider the petitioner's objections, provide a fair hearing, and issue final orders within eight weeks. The writ petition was disposed of without imposing costs, allowing the petitioner to submit additional documents during the process.

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Issues:
Challenge to show cause notice under GST Act.

Analysis:
The Writ Petition challenges a show cause notice dated 08.03.2022 issued under the GST Act. The petitioner contends that the allegations in the notice are arbitrary and illegal, as the business was closed in 2013. The petitioner denies any irregularity and disassociation from the suppliers mentioned. It is highlighted that a new GST registration was obtained for the current business in 2021. The petitioner expresses concern over delays in investigating misuse of the earlier GST registration. The Court notes that a show cause notice can only be challenged if issued without authority, jurisdiction, or predetermination, which is not the case here.

The respondents issued the notice based on alleged wrongful availing of Input Tax Credit. The petitioner responded to the notice on 10.02.2023, reiterating objections raised in the Writ Petition. The Court deems the challenge premature, emphasizing the need for the respondents to consider the petitioner's objections and provide a personal hearing before passing a final order. The petitioner was granted a personal hearing on 21.02.2023 and requested another, which was allowed for 02.03.2023.

The Writ Petition is disposed of directing the petitioner to attend a personal hearing on 02.03.2023. The respondents are instructed to consider the petitioner's reply, adhere to natural justice principles, and issue final orders within eight weeks of the personal hearing. The petitioner can submit additional documents. No costs are imposed, and the connected Writ Miscellaneous Petition is closed.

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