9911796707
TMI Blog2023 (12) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... ust, 2023, it is seen that except extracting the reply given by the appellants, the authority has not dealt with the contentions, which were placed by the appellants in the reply to the pre-show cause notice. Thus, this would be sufficient to hold that the show cause notice dated 16th August, 2023 has been issued without due application of mind. Be that as it may, this Court is satisfied that since the show cause notice dated 16th August, 2023 has been issued without due application of mind, without considering the reply to the pre-show cause notice and without conducting any inquiry or investigation at the supplier s end, the show cause notice would call for interference. Thus, the Court is satisfied that the case on hand falls within one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice unless it is established that the show cause notice was issued without jurisdiction or it suffers from perversity or in cases, where the allegations are absolutely vague and noticee will not be in a position to submit an effective reply. In the instant case what persuades this Court to interfere with the show cause notice is on account of the following facts. 3. The appellants were issued a show cause notice intimating certain discrepancies on 30th December, 2022. The allegation was that the appellants had availed/utilised input tax credit during the financial year 2018-19 on supplies whose registration was cancelled retrospectively. The other allegation was that the appellants had claimed input tax credit arising out of debit notes by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive cancellation of the supplier s registration and allegations, where the suppliers filed the returns for the concerned financial year. Thus, what was required by the authority to do, was to examine the reply given in the pre-show cause notice and considering the nature of allegations in the pre-show cause notice, it goes without saying that the authority has to investigate or inquire into the matter by taking note of the relevant details at the supplier s end. If that is not done, the true facts will not emerge and consequently, issuance of any show cause notice will be a fait accompli. However, in the instant case, the authority has not conducted any such investigation and proceeded to issue the impugned show cause notice dated 16th Aug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was dismissed by the Hon ble Supreme Court on 14th December, 2023. 8. Be that as it may, this Court is satisfied that since the show cause notice dated 16th August, 2023 has been issued without due application of mind, without considering the reply to the pre-show cause notice and without conducting any inquiry or investigation at the supplier s end, the show cause notice would call for interference. Thus, the Court is satisfied that the case on hand falls within one of the exceptional circumstances, where the Court will exercise its jurisdiction to interdict a show cause notice. 9. For the above reasons, the appeal is allowed and consequently, the writ petition is allowed and the show cause notice dated 16th August, 2023 is set aside a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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