2024 (4) TMI 269 - HC - GST

Tax Demand Quashed: Procedural Defect in Notice Service Invalidates Rs. 1.2 Crore GST Assessment Under Proper Hearing Rules

HC set aside an order creating a tax demand of Rs. 1,21,64,174 under GST Act due to lack of proper notice service. The court granted the petitioner 30 ... Violation of principles of natural justice - SCN not received as the show cause notice was not uploaded on the GST portal under the heading ‘Notices’ but appears to have been uploaded under the heading of Additional Notices - HELD THAT:- Perusal of the impugned order shows that the order does not specifically deal with any of the averments in the notice and appears to be an order passed in default on account of the petitioner neither filing a reply nor appearing for personal hearing. In view of the above and in view of the request of the petitioner that an opportunity be given to the petitioner to file a response to the show cause notice, the impugned order dated 15.12.2023 is set aside - Petitioner is given an opportunity of filing a reply to the show cause notice within a period of 30 days from today. Thereafter the Proper Officer shall re-adjudicate the Show Cause Notice after giving an opportunity of personal hearing to the petitioner and shall pass a fresh speaking order in accordance with law within the period prescribed under Section 75 (3) of the Act. Petition disposed off. Issues involved: Impugning an order under the Central Goods and Service Tax Act, 2017 due to a show cause notice not being received and a demand being created against the petitioner.Summary:The petitioner challenged an order dated 15.12.2023, which disposed of a show cause notice dated 23.09.2023 and created a demand of Rs. 1,21,64,174 against the petitioner under Section 73 of the Central Goods and Service Tax Act, 2017. The petitioner contended that they never received the show cause notice as it was not uploaded on the GST portal under the correct section. The impugned order did not address the petitioner's submissions, leading to the petitioner requesting an opportunity to respond to the show cause notice. Consequently, the High Court set aside the impugned order and granted the petitioner 30 days to file a reply to the show cause notice. The Proper Officer was directed to re-adjudicate the notice after providing a personal hearing to the petitioner and to pass a fresh order within the prescribed period under Section 75(3) of the Act. The Court clarified that it did not assess the merits of the parties' contentions, and all rights and contentions were reserved. The petition was disposed of accordingly.