9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (2) TMI 465 - HC - GSTViolation of principles of natural justice - no proper and prior Show Cause Notice prescribed under sub-section 1 of Section 73 of the Assam Goods and Services Tax Act 2017 - petitioner was only served with a Summary of Show Cause Notice in Form GST DRC-01 which is also not in conformity with Section 73 read with Rule 142 1 a of the Assam Goods and Services Tax Act 2017 - HELD THAT - From the provisions of Section 73 it emerges that the Show Cause Notice is required to be issued by the proper officer the statement under Section 73 3 is to be issued by the proper officer as well as the Order under Section 73 9 is required to be issued by the proper officer. Compliance of the provisions contained in sub-section 1 to sub-section 8 and sub-section 10 to sub-section 11 of Section 73 and sub-rule 1 of Rule 142 are conditions precedent to term an Order passed under sub-section 9 of Section 73 as a valid one. Having regard to the fact that a proper and prior Show Cause Notice under sub-section 1 of Section 73 of the AGST Act 2017 was not issued along with the Summary of Show Cause Notice in Form GST DRC-01 Annexure-B to the writ petition and the Attachment to Determination of Tax Annexure-B to the writ petition and in terms of the observations made in the common Judgment and Order dated 26.09.2024 supra the impugned Order dated 30.12.2023 Annexure-C to the writ petition is found not sustainable in law and the same deserves to be set aside and quashed. Petition disposed off.
The High Court considered a writ petition challenging an order passed under Section 73 of the Assam Goods and Services Tax Act, 2017. The petitioner contended that the order was invalid as there was no proper and prior Show Cause Notice issued as required by law. The Court analyzed the relevant legal provisions under Section 73 of the Central Goods and Services Tax Act, 2017, and Rule 142 of the Central Goods and Services Tax Rules, 2017, which are similar to the provisions of the Assam Goods and Services Tax Act, 2017.The Court identified three main issues for consideration based on a previous judgment:1. Whether Show Cause Notices were issued prior to passing the Impugned Order under Section 73 [9] of the State Act?2. Whether the determination of tax and the Order attached to the Summary of the Show Cause Notice can be considered as the Show Cause Notice and Order respectively?3. Whether the impugned orders under Section 73 [9] of the State Act comply with Section 75 [4] and principles of natural justice?In its conclusion, the Court held:- The Summary of the Show Cause Notice is not a substitute for the actual Show Cause Notice required by law.- The determination of tax attached to the Summary of Show Cause Notice cannot replace the Show Cause Notice.- Proper Officer must issue the Show Cause Notice, Statement, and Order under Section 73.- The impugned orders were set aside as they violated Section 75 [4] and lacked proper Show Cause Notices.- The Court granted liberty to the respondent authorities to initiate fresh proceedings under Section 73 if necessary.The Court emphasized the importance of following the procedural requirements under Section 73 for a valid order. It found that the absence of a proper Show Cause Notice rendered the impugned order unsustainable in law. The Court's decision highlights the significance of adhering to procedural fairness and legal requirements in tax matters.The judgment underscores the essential role of procedural compliance in tax assessments and the need for authorities to follow due process to ensure fairness and justice in tax proceedings.
|
