2024 (2) TMI 473 - HC - GST

IGST Refund Challenge: Procedural Defects Exposed, Petitioner Granted Fair Hearing and Document Access Rights

M/s. Pooppally Coir Mills, Versus The State Tax Officer, Alappuzha,

HC found that show cause notices regarding IGST refund were procedurally deficient. The court directed authorities to provide supporting materials to the ... Wrong availment of IGST refund - Scope of the show cause notice - It is the case of the petitioner that the petitioner is not able to ascertain with certainty the basis for the issuance of the show cause notices - HELD THAT:- It is opined that since Exts. P3 and P4 are only show cause notices, the petitioner must, at least at the first instance, appear before the officer and show cause against the proposals in Exts. P3 and P4. However, the learned counsel for the petitioner is right in contending that the petitioner is entitled to the materials on the basis of which the show cause notices have been issued to the petitioner and without such materials, it may not be possible for the petitioner to file a proper reply to the show cause notices. This writ petition will stand disposed of directing that, the petitioner or an authorized representative of the petitioner shall appear before the officer, who issued Exts. P3 and P4 show cause notices at the designated time on 30-01-2024. Issues involved: The petitioner challenged the issuance of show cause notices (Exts. P3 and P4) regarding alleged wrong availment of IGST refund, citing lack of clarity on the basis for the notices and non-supply of materials forming the basis of the allegations.Summary:Issue 1: Lack of clarity on basis for show cause noticesThe petitioner contended that the show cause notices (Exts. P3 and P4) lacked clarity on the basis for alleging the wrong availment of IGST refund. The petitioner argued that crucial materials supporting the notices, including a letter from the Commissioner of Customs, were not provided. The petitioner expressed inability to respond effectively without access to these materials. In response, the Government Pleader emphasized that it was the petitioner's responsibility to file proper replies and request the necessary documents for clarification.Issue 2: Non-supply of crucial materialsThe petitioner highlighted that despite submitting requests for specific details through letters (Exts. P5 to P8), the required materials were not furnished by the authorities. Acknowledging the importance of having access to the materials forming the basis of the show cause notices, the court recognized the petitioner's right to receive such documents to enable a proper response.Judgment:After considering the arguments presented, the court directed the petitioner or an authorized representative to appear before the officer who issued the show cause notices on the specified date. The petitioner was granted the opportunity to request the necessary documents for preparing a comprehensive reply to the notices. The officer was instructed to provide the requested documents within a reasonable timeframe. Subsequently, the petitioner was granted an additional two weeks to respond to the show cause notices. The matter was to be adjudicated by the competent officer following the principles of natural justice and providing the petitioner with a fair hearing.