2020 (8) TMI 627 - HC - GST

Validity of SCN - direction to the respondents not to proceed with the adjudication proceedings until Rule 142(1A) of the CGST Rules is complied with - HELD THAT - Issue Notice. List on 04th November, 2020.

Summary

Issues involved:
Challenge to show cause notice dated 21st May, 2020 and direction to respondents not to proceed with adjudication until Rule 142(1A) of CGST Rules is complied with.

Analysis:
The High Court of Delhi, comprising Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sanjeev Narula, considered a writ petition challenging a show cause notice dated 21st May, 2020. The petitioner sought a direction to the respondents to refrain from proceeding with adjudication until Rule 142(1A) of the CGST Rules is adhered to. The petitioner's counsel argued that the impugned notice was issued without providing details of tax, interest, and penalty in Part A of FORM GST DRC-01A in accordance with Rule 142(1A) of the CGST Rules. The Court took note of the urgency expressed and conducted the hearing via video conferencing.

The Court, after hearing the arguments, issued notice to the respondents. Mr. Harpreet Singh, representing the respondents, accepted the notice and was granted four weeks to file a counter affidavit. The Court directed that any rejoinder affidavit should be filed before the next hearing scheduled for 4th November, 2020. The order was to be uploaded on the website immediately, and a copy was to be sent to the petitioner's counsel via email.

In conclusion, the High Court of Delhi allowed the petition to challenge the show cause notice and directed the respondents to halt adjudication proceedings until compliance with Rule 142(1A) of the CGST Rules. The matter was scheduled for further hearing, with timelines set for filing affidavits, ensuring due process and fair opportunity for both parties to present their case.