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RAJESH BINDAL, J. J. MUNIR
Tanishka International – Appellant
Versus
State of U. P. – Respondent
JUDGMENT :
Challenge in the present writ petition is to the order dated February 23, 2021 (DRC-07) Annexure-2 to the writ petition passed by respondent No. 2 under Section 74(9) of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as the ''Act'').
2. The argument raised by the learned counsel for the petitioner is that in terms of the provisions of Rule 142(1A) of the Central Goods and Service Tax Rules, 2017 (hereinafter referred to as ''the Rules) as existing at the time of initiation of the proceedings against the petitioner before it was amended on October 15, 2020, before passing any order under Section 74 of the Act, a show-cause notice in Part A of FORM GST DRC-01A is required to be issued. It is only thereafter that the jurisdiction is vested with the Competent Authority to pass order. In the case in hand, notice in Part A of FORM GST DRC-01A having not been issued, any subsequent proceeding will be without jurisdiction as the petitioner did not have fair opportunity to respond.
3. In support of the argument, reliance was placed on a Division Bench judgment of Delhi High Court in Gulati Enterprises v. Central Board of Indirect Taxes and Customs and others
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....
The court established that under GST Rules, there is no obligation to provide a hearing before issuing a show cause notice, as the communication is discretionary.
The issuance of a show cause notice and order without providing the opportunity for a personal hearing violates principles of natural justice.
The main legal point established in the judgment is the mandatory and imperative nature of the show cause notice requirement under Section 74(1) of the JGST Act and the need for specific charges in t....
A Summary of Show Cause Notice cannot replace a proper Show Cause Notice, and failure to provide a hearing violates natural justice principles.
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