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RAJESH BINDAL, J. J. MUNIR
Skyline Automation Industries – Appellant
Versus
State of U. P. – Respondent
ORDER
Rajesh Bindal, C.J.
Challenge in the present writ petition is to the order dated November 10, 2022 (DRC-07) Annexure-7 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 judgement of Delhi High Court in Gulati Enterprises v. Central Board of Indirect Taxes and Cus
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.
A proper Show Cause Notice is essential for valid proceedings under Section 73 of the Assam Goods and Services Tax Act, and its absence invalidates any subsequent orders.
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....
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