2024 (2) TMI 133 - HC - GST

Violation of principles of natural justice - no notice was issued to the petitioner under Section 74(1) of Uttar Pradesh Goods and Services Tax Act, 2017 - HELD THAT - From the record, it is clear that a notice was issued to the petitioner under Section 74(5) of the Act on June 4, 2021 wherein officer asserted that the tax is payable by the assessee. However, upon non-payment of the tax, Section 74(7) of the Act would come into play and the proper officer is required to give a notice under Section 74(1) of the Act. This procedure, that is to be followed, was not followed and no show cause notice was issued to the petitioner. Instead of the same, the impugned order dated July 30, 2021 was passed. Thus, it is clear that proper show cause notice was not issued to the petitioner, and therefore, all the orders impugned herein are without any basis of law, the impugned orders are required to be set aside - petition allowed.

Summary

Issues involved: Challenge to orders passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 without proper notice.

Summary:

Issue 1: Lack of proper notice under Section 74(1) of the Act
The petitioner challenged the orders dated July 30, 2021 and August 31, 2022 passed by the Assistant Commissioner and Additional Commissioner, Grade-2 (Appeal) respectively, on the ground that no notice was issued to the petitioner under Section 74(1) of the Act. The court noted that a notice was issued under Section 74(5) of the Act on June 4, 2021, asserting tax liability, but no show cause notice under Section 74(1) was given. The court held that the proper procedure was not followed, rendering the impugned orders without legal basis. Consequently, the court quashed and set aside the impugned orders, allowing the writ petition.

Decision:
The court allowed the writ petition, quashed the impugned orders, and directed the respondents to proceed in the matter after issuing a notice under Section 74(1) of the Act.