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RITU BAHRI, MANISHA BATRA
Daman Textiles – Appellant
Versus
Union of India – Respondent
JUDGMENT
Ms. Ritu Bahri, J. (Oral)
The present petition has been filed seeking quashing of show cause notice in Form GST DRC-01 bearing No. AW/FGS/294 dated 23.11.2022 (P-8) as well as impugned order dated 25.01.2023 (P-1), vide which the tax liability has been imputed upon the petitioner firm on account of inadmissible ITC claimed from bogus firms.
2. Issue notice of motion.
3. On asking of the Court, Ms. Anu Pal, Sr DAG Punjab and Mr. Sourabh Goel, Sr. Panel counsel, accepts notice on behalf of respondent-State and respondent-department respectively.
4. The precise grievance of the petitioner before this Court is that respondent No. 4 has already issued a show cause notice dated 09.03.2018 (P-4) for the same transaction and for the same period. But now again a fresh show cause notice has been issued to the petitioner in Form GST DRC-01 dated 23.11.2022 (P-8) and without opportunity of personal hearing, the impugned order has been passed on 25.01.2023 confirming the tax liability of Rs.24,60,526/-along with interest amounting to Rs.19,55,560/- and penalty amounting to Rs.12,30,264/- under Section 74 (11) of the CGST/SGST Act, 2017.
5. Learned counsel submits that the two show cause
The issuance of a show cause notice and order without providing the opportunity for a personal hearing violates principles of natural justice.
Multiple Show Cause Notices can exist for the same tax period under GST if they pertain to different subjects, reinforcing the absence of a bar under the GST regulations.
The central legal point established in the judgment is the requirement of personal hearing and compliance with statutory provisions, emphasizing the principles of natural justice in adjudicative proc....
The jurisdiction under the Central Goods and Services Tax Act prohibits State GST authorities from initiating parallel proceedings once Central GST proceedings have commenced on the same subject matt....
The court emphasized the mandatory requirement of granting a hearing under Section 75(4) of the GST Act before making any adverse decisions.
The court established that the failure to issue a mandatory show-cause notice under Rule 142(1A) of the GST Rules prior to initiating proceedings is a jurisdictional defect that invalidates any subse....
Natural justice mandates an adequate opportunity for hearings; failure to do so renders an order void.
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