2022 (7) TMI 644 - HC - GST

Maintainability of petition - even before passing any order, the petitioner has rushed to this Court with the petition - reply to SCN was also not given by petitioner - HELD THAT - It is seen that the petitioner has not only received the show cause notice but also earlier the petitioner was issued with summons and thereafter only DRC-01A has been issued, intimating the tax ascertained as being payable. Now, the show cause notice has been issued, for which, the petitioner has to give reply and thereafter personal hearing would be given, where he can make his submissions along with supporting documents, thereafter only order in original would be passed and it is the procedure as contemplated under law. Hence, this Court is not inclined to entertain the petition. Petition dismissed.

Summary

Issues:
1. Quashing of impugned notice dated 29.03.2022
2. Validity of show cause notice under Section 73 of the CGST Act, 2017

Analysis:
1. The petitioner filed a writ petition seeking to quash the impugned notice dated 29.03.2022 issued by the fourth respondent. The petitioner had previously responded to summons and notices regarding tax issues, citing relevant circulars and explanations. The petitioner argued that the GST applicable on job work is 18% only, which has been paid. The Standing Counsel for the respondents contended that the petitioner was called to provide receipts, documents, and explanations, and subsequent notices were issued based on the responses provided. The respondent argued that if the petitioner has objections to the show cause notice, they will be heard before passing any order. The High Court noted that the petitioner had received the show cause notice, and the procedure under the law requires the petitioner to respond, attend a personal hearing, submit supporting documents, and then the order in original would be passed. Therefore, the Court declined to entertain the petition and dismissed it.

2. The Court emphasized that the petitioner had received summons, notices, and a DRC-01A notice before the show cause notice under Section 73 of the CGST Act, 2017 was issued. The Court highlighted the procedural requirement for the petitioner to respond to the show cause notice, attend a personal hearing, and submit supporting documents before the order in original is passed. The Court concluded that the procedure outlined by law must be followed, and hence dismissed the petition without costs. The connected miscellaneous petition was also closed as a result of the dismissal.