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2020 (11) TMI 787 - HC - GSTPrinciples of Natural Justice - foundational SCN was never communicated to the petitioner who is an individual registered under GST Act - Rule 142 of Central Goods and Services Tax Act, 2017 - HELD THAT - As per Rule 142 of CGST Act, the only mode prescribed for communicating the show-cause notice/order is by way of uploading the same on website of the revenue. The State in its reply has provided no material to show that show-cause notice/order No.10 dated 10.06.2020 was uploaded on website of revenue. In fact, learned AAG, Shri Mody, fairly concedes that the show-cause notice/order was communicated to petitioner by Email and was not uploaded on website of the revenue - It is trite principle of law that when a particular procedure is prescribed to perform a particular act then all other procedures/modes except the one prescribed are excluded. This principle becomes all the more stringent when statutarily prescribed as is the case herein. This Court has no manner of doubt that statutory procedure prescribed for communicating show-cause notice/order under Rule 142(1) of CGST Act having not been followed by the revenue, the impugned demand dated 18.09.2020 vide Annexure P/2 pertaining to financial year 2019-2020 and tax period April, 2019 to July, 2019 deserves to be and is struck down - Petition allowed.
Issues:
Violation of principle of natural justice regarding communication of show-cause notice/order under Rule 142 of CGST Act. Analysis: The petitioner filed a petition invoking the writ and supervisory jurisdiction of the High Court under Articles 226 and 227 of the Constitution. The petitioner sought various reliefs, including quashing the impugned order in Form GST DRC-07 dated 18.09.2020 and related orders under section 74 dated 10.06.2020, as well as directing compliance with the provisions of the GST Act. The petitioner's grievance was that the foundational show-cause notice/order dated 10.06.2020 was not communicated to them, despite raising a tax demand based on this notice for the financial year 2019-2020 and tax period April 2019 to July 2019. The Court requisitioned a reply from the State regarding the alleged violation of the principle of natural justice under Rule 142 of the CGST Act. The State responded, stating that the show-cause notice/order dated 10.06.2020 was communicated to the petitioner via email, but the petitioner did not respond to it. The petitioner argued that Rule 142(1) of the CGST Act mandates the revenue department to communicate such notices/orders by uploading them on the revenue website to ensure the aggrieved party has access to the reasons behind the demand and can seek remedies before higher forums. Upon examining Rule 142 of the CGST Act, the Court noted that the prescribed mode for communicating show-cause notices/orders is by uploading them on the revenue website. The State admitted that the notice/order in question was not uploaded on the website, confirming that it was communicated via email. The Court emphasized the principle that when a specific procedure is prescribed by law, all other modes are excluded, especially when statutorily mandated. Consequently, the Court found that the statutory procedure for communication under Rule 142(1) was not followed by the revenue department, leading to the impugned demand being struck down. As a result of the above analysis, the Court allowed the petition, invalidating the demand dated 18.09.2020, and granted liberty to the revenue department to communicate the show-cause notice to the petitioner following the prescribed procedure under Rule 142 of the CGST Act for further proceedings in accordance with the law.
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