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2019 (8) TMI 84 - HC - GSTInterest on Input tax credit - Recovery without issuing Show cause notice (SCN) and determination of liability - constitutional validity of Section 50(1) of Central Goods and Service Tax (CGST) Act, 2017 and Section 50(1) of the Karnataka Goods and Services Tax, 2017 - HELD THAT:- The issuance of Show Cause notice is sine qua non to proceed with the recovery of interest payable thereon under Section 50 of the Act and penalty leviable under the provisions of the Act or the Rules. Undisputedly, the interest payable under Section 50 of the Act has been determined by the third respondent – Authority without issuing Show Cause Notice, which is in breach of principles of natural justice. It is trite law that any order passed by the quasi-judicial authorities in contravention of the principles of natural justice, cannot be sustained. It is ex-facie apparent that action of the third respondent is perverse and illegal and the same deserves to be set aside - petition allowed.
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