2024 (1) TMI 1145 - HC - GST

Petitioner Granted One Week to Respond to GST Show Cause Notice Under Rule 86B with Right to Personal Hearing

HC granted petitioner one week to file response to GST show cause notice alleging Rule 86B violation. Respondent directed to dispose of notice through ... Show cause notice - suspension of GST registration - alleged violation of Rule 86B of the Central Goods and Services Tax Act, 2017 - opportunity of personal hearing - disposal by a speaking order - remand for fresh decisionShow cause notice - suspension of GST registration - alleged violation of Rule 86B of the Central Goods and Services Tax Act, 2017 - disposal by a speaking order - opportunity of personal hearing - Permissibility of filing response and direction for disposal of the pending show cause notice and related suspension of GST registration - HELD THAT: - The Court recorded that the show cause notice dated 18.09.2023, issued on the ground of an alleged violation of Rule 86B, remained pending. Having taken the matter up for final disposal with the consent of parties, the Court permitted the petitioner to file a response to the show cause notice within one week. The respondent was directed, upon receipt of that reply, to dispose of the show cause notice by a speaking order within two weeks and to afford the petitioner a personal hearing before passing such order. The Court noted the petitioner's attempt to file a reply online and physically and that the matter required adjudication; it therefore provided a limited timetable and procedural safeguard without adjudicating the merits of the allegation under Rule 86B. The Court further observed that any grievance against the subsequent order would be subject to available legal remedies. [Paras 7]Petitioner directed to file response within one week; respondent to decide the pending show cause notice by a speaking order within two weeks thereafter, after affording personal hearing.Final Conclusion: Writ petition disposed of by directing the petitioner to file a reply to the pending show cause notice within one week and directing the respondent to decide the notice by a speaking order within two weeks after giving personal hearing; merits of the alleged breach of Rule 86B left open with liberty to pursue available remedies. Issues involved: Impugning show cause notice and suspension of GST registration due to alleged violation of Rule 86B of the Central Goods and Services Tax Act, 2017.Impugning show cause notice: The petitioner challenged the show cause notice dated 18.09.2023, alleging a violation of Rule 86B of the CGST Act, 2017. The petitioner contended that there was no violation of the said rule. The petitioner was granted one week to file a reply, but due to certain exigencies, the reply could not be submitted within the stipulated time. Attempts to upload the reply online were unsuccessful, and physical submission was also rejected.Court's Decision on Show Cause Notice: The court issued notice on the matter, which was accepted by the respondent's counsel. The petition was then taken up for final disposal with the consent of both parties. The respondent's counsel informed the court that the show cause notice was still pending and had not been disposed of.Final Disposition: The court disposed of the petition by allowing the petitioner to file a response to the show cause notice within one week. Upon submission of the reply, the respondent was directed to dispose of the show cause notice through a speaking order within two weeks. Additionally, the respondent was instructed to provide the petitioner with an opportunity for a personal hearing before concluding the matter. It was clarified that the petitioner could seek further legal remedies if aggrieved by any subsequent orders.Conclusion: The petition was disposed of in the aforementioned terms, providing a clear directive for the resolution of the show cause notice issue u/s Rule 86B of the CGST Act, 2017.