GST penalty notice and natural justice challenge failed where records did not establish receipt of goods or ITC conditions.

GST penalty proceedings were sustained where the assessee received a show cause notice, was given multiple personal hearings, and the order rested on missing supporting documents such as weighment slips, RFID details and proof of receipt of goods. The Madras HC treated the challenge as one of alleged breach of Section 75(7) and natural justice, but found no invalidity in the notice or procedure. It also noted that input tax credit is provisional and may be denied if receipt of goods or other statutory conditions are not established. The writ challenge to the penalty order was rejected.

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Issues: Whether the penalty order under the GST enactments was vitiated for want of proper notice or breach of Section 75(7), and whether the petitioner had made out any ground for interference in writ jurisdiction.

Analysis: The challenge was founded on the alleged absence of a proper notice disclosing the basis for levy of penalty under Section 122(1)(vii) and on alleged violation of natural justice. The Court noted that the petitioner had been issued the show cause notice, granted multiple opportunities of personal hearing, and that the impugned order was based on the absence of supporting documents such as weighment slips, RFID details and other proof of receipt of goods. The Court further held that Input Tax Credit is provisional and can be denied where the assessee fails to establish receipt of goods or satisfy the statutory conditions.

Conclusion: No violation of Section 75(7) or natural justice was made out, and the writ challenge to the penalty order was rejected.

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