2024 (8) TMI 1459 - HC - GST

Court Dismisses Petition Due to Non-Response; Directs Use of Statutory Remedy Under GST Act for Appeal.

M/s Shree Sai Nath Construction Company Thru. Its Proprietor Mr. Virendra Kumar Mishra Versus Union Of India Thru. Its Secy. Ministry Of Finance Deptt. Of Revenue New Delhi And Ors.

M/s Shree Sai Nath Construction Company Thru. Its Proprietor Mr. Virendra Kumar Mishra Versus Union Of India Thru. Its Secy. Ministry Of Finance Deptt. Of ... Issues:Violation of natural justice in issuance of notice under Section 73 of GST Act, 2017.Analysis:The petitioner filed a petition seeking to quash an order dated 18.04.2024 passed by the Deputy Commissioner, Raebareli Sector, Lucknow. The petitioner argued that the notice issued to him on 30.11.2023 and 23.01.2024 did not provide an opportunity for a hearing as required under Section 75(4) of the GST Act, 2017. The petitioner claimed that the order was unjust and should be set aside. The Standing Counsel presented instructions showing that the petitioner had discrepancies in his GST return and had not responded to the notices issued under Sections 61 and 73 of the Act. The assessing officer imposed a tax liability of Rs. 68,53,320/- with interest and penalty. The petitioner's counsel contended that while the petitioner could appeal under Section 107 of the Act, there was a failure on the respondents' part to adhere to the principles of natural justice by not providing a personal hearing in the notice issued under Section 73.The Court noted that the petitioner had not responded to the notices under Sections 61 and 73 nor requested an extension of time or a personal hearing. The Court emphasized that when a show cause notice is issued, it is expected that the recipient, especially a businessman, would reply and seek a hearing. The Court opined that since the petitioner did not avail the opportunity for a hearing, there was no basis to interfere with the procedure followed by the respondents. The Court directed the petitioner to pursue the statutory remedy available under Section 107 of the GST Act, disposing of the petition accordingly. The Court also recorded the appearance of the opposite party and retained the instructions on record for reference.This judgment underscores the importance of complying with the principles of natural justice in administrative proceedings, particularly in matters concerning taxation. It highlights the significance of availing statutory remedies provided under the law and the consequences of failing to engage with the legal process effectively.