2024 (12) TMI 340 - HC - GST

Challenge to SCN issued in Form GST DRC-01 and DRC-7 order - few pleas raised by the petitioner have not been taken into consideration while issuing the notice - limitation of filing appeal has been lost - principles of natural justice - HELD THAT - A perusal of the show cause notice, issued under Section 74(1) (Annexure-6), reveals that though the reply filed by the petitioner has been considered, apparently, only part of it (para 18 to 22 of the same) has been quoted and the other pleas which were raised, apparently, have not been taken into consideration. As apparently, no response to the show cause notice was filed and no appearance was made, while passing the order in DRC-01, the same show cause notice has been reproduced noticing that no response has been given and no appearance has been made. In the overall fact situation of the case, wherein the respondent on account of circumstances, as noticed, has lost the limitation for filing appeal and the fact that to some extent, the pleas raised by the petitioner have not been taken into consideration while issuing the notice under Section 74(1) of the Act, in the peculiar circumstances of the case, it is deemed appropriate and therefore, ordered that in case, the petitioner deposits 50% of the demand Rs. 73,87,225.92/- raised, after taking into consideration the amount, if any, already deposited, within a period of four weeks, the order dated 24.07.2023 (Annexure-7) shall stand set aside, the respondent would afford opportunity of hearing to the petitioner and pass fresh order. The writ petition stands disposed of.

Summary

The High Court Allahabad issued a judgment in response to a petition challenging a show cause notice and order issued under the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner raised concerns about the validity of the order, claiming family circumstances prevented attendance at a hearing. The court found that only part of the petitioner's response was considered in the notice, and the petitioner had lost the appeal filing limitation. The court ordered that if the petitioner deposits 50% of the demanded amount within four weeks, the previous order will be set aside for a fresh hearing; otherwise, the petition will be dismissed.