2023 (2) TMI 1128 - HC - GST

Validity of SCN - Reversal of Input Tax Credit - Penalty - misuse of earlier GST Registration of the petitioner - HELD THAT - A show cause notice can be challenged only if the same is issued without Authority under Law or has been issued without jurisdiction or has predetermined the issue - In the instant case, none of the above mentioned requirements have been satisfied - As seen from the documents filed along with this Writ Petition, the petitioner has been afforded a personal hearing on 21.02.2023. Learned counsel for the petitioner also submits that the petitioner shall appear for the personal hearing today (21.02.2023) and he also requests for one more personal hearing for the petitioner. No prejudice would be caused to the respondents if one more personal hearing is afforded to the petitioner - this Writ Petition is disposed of by directing the petitioner to appear for personal hearing with the respondents on 02.03.2023 at 10 30 a.m. and the respondents, after affording a personal hearing to the petitioner, after giving due consideration to the reply dated 10.02.2023 submitted by the petitioner and after adhering to the principles of natural justice, shall pass final orders on merits and in accordance with law, pursuant to the impugned show cause notice dated 08.03.2022, within a period of eight weeks from the date of the personal hearing. Petition disposed off.

Summary

Issues:
Challenge to show cause notice under GST Act.

Analysis:
The Writ Petition challenges a show cause notice dated 08.03.2022 issued under the GST Act. The petitioner contends that the allegations in the notice are arbitrary and illegal, as the business was closed in 2013. The petitioner denies any irregularity and disassociation from the suppliers mentioned. It is highlighted that a new GST registration was obtained for the current business in 2021. The petitioner expresses concern over delays in investigating misuse of the earlier GST registration. The Court notes that a show cause notice can only be challenged if issued without authority, jurisdiction, or predetermination, which is not the case here.

The respondents issued the notice based on alleged wrongful availing of Input Tax Credit. The petitioner responded to the notice on 10.02.2023, reiterating objections raised in the Writ Petition. The Court deems the challenge premature, emphasizing the need for the respondents to consider the petitioner's objections and provide a personal hearing before passing a final order. The petitioner was granted a personal hearing on 21.02.2023 and requested another, which was allowed for 02.03.2023.

The Writ Petition is disposed of directing the petitioner to attend a personal hearing on 02.03.2023. The respondents are instructed to consider the petitioner's reply, adhere to natural justice principles, and issue final orders within eight weeks of the personal hearing. The petitioner can submit additional documents. No costs are imposed, and the connected Writ Miscellaneous Petition is closed.