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2021 (10) TMI 837 - HC - GSTValidity of demand of GST - summary of show cause in Form GST-DRC-01 under Rule 142(1) - Violation of principles of natural justice - opportunity of personal hearing provided or not - Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017 - HELD THAT - The uploading or serving of summary of show cause in Form GST-DRC-01 under Rule 142(1) is not a mere formality, but it is mandated under the Rule, so that, the Assessee would have a chance of getting summary of show cause and to respond the same and without giving such a breathing time, on the very same day, that is, the date on which GST-DRC-01 notice, that is, summary of notice was uploaded, the impugned order was passed. This Court feel that the impugned order can not be sustained, accordingly, it is liable to be quashed - the matter is remitted back to the respondent for reconsideration - Petition allowed by way of remand.
Issues:
1. Jurisdiction and violation of Section 140(1) of the Tamil Nadu Goods and Services Tax Act, 2017. 2. Issuance of notice and summary of show cause under Rule 142(1) of the Central Goods and Services Tax (CGST) Rules. 3. Lack of opportunity for the Assessee to respond before passing the assessment order. 4. Validity of the assessment order passed without giving breathing time to the Assessee. 5. Remittal of the matter for reconsideration by the respondent. Detailed Analysis: 1. The petitioner sought a Writ of Certiorarified Mandamus to quash an assessment order issued by the respondent, alleging it was without jurisdiction and violated Section 140(1) of the Tamil Nadu Goods and Services Tax Act, 2017. The petitioner contended that the order should be set aside and a fresh order passed after providing an opportunity for a personal hearing as per Section 75(4) of the Act. 2. The respondent revenue, for the financial year 2017-18, initiated a review of the petitioner's monthly returns despite their timely filing. A notice was issued on 13.09.2019, as required by Rule 142(1) of the CGST Rules. However, the summary of the show cause in Form GST-DRC-01 was electronically uploaded on 04.06.2020, and the assessment order was passed on the same day without allowing the Assessee time to respond. The Court noted the mandatory nature of issuing the summary of show cause for the Assessee to have an opportunity to respond. 3. The Court observed that the summary of show cause notice is not a mere formality but a crucial step for the Assessee to understand the allegations and respond adequately. In this case, the order was passed on the same day as the uploading of the summary, depriving the Assessee of the opportunity to present their case effectively. Consequently, the Court found the order unsustainable and liable to be quashed. 4. Due to the lack of breathing time between the uploading of the show cause summary and the passing of the assessment order, the Court determined that the impugned order could not stand. As a remedy, the Court quashed the order and remitted the matter back to the respondent for reconsideration. The Court directed the respondent to upload the summary of the show cause afresh, allowing the Assessee sufficient time to respond before a fresh assessment order is passed. 5. The Court disposed of the writ petition with the above directions, emphasizing the importance of providing the Assessee with a fair opportunity to respond to allegations before finalizing any assessment order. No costs were awarded, and the connected miscellaneous petition was closed, concluding the legal proceedings in this matter.
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