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2022 (7) TMI 814 - HC - GSTValidity of summary of SCN - it s alleged that the summary of show-cause notice has pre-judged and pre-decided the entire issue and has in fact fastened the liability towards tax, interest and penalty upon the individual petitioners - opportunity of hearing not granted - violation of principles of natural justice - HELD THAT:- The adjudication proceedings in each case were based upon inspection undertaken on the basis of the intelligence inputs provided to the concerned circles by the headquarters of the State Tax Department. It is also evident from the records and the stand taken by the respondents in the counter affidavit that no relied upon documents in the inspection report were supplied to the petitioners. Respondents have now after producing the compilation of records of the proceedings in individual cases, not been able to dispute that no proper showcause notice was issued in terms of Section 74(1) of the JGST Act to the individual petitioners. In the absence of a proper show-cause notice the petitioners herein have been denied proper opportunity to defend themselves of the charges. The requirement of affording opportunity of hearing as contemplated in Section 75(4) of the JGST Act has also been denied. Section 75(5) provides that in case sufficient show-cause is shown by the person chargeable with tax, the proper officer shall grant time to the said person and adjourn the hearing for reasons to be recorded in writing provided that no such adjournment shall be granted for more than three times to a person during the proceedings. At this stage that the summary of show-cause notice in case of each of the writ petitioners is in the same format and language. It does not indicate any date for filing reply. The language employed also creates a clear impression that the liability towards tax, penalty and interest has been already pre-determined. None of the petitioners got any opportunity to reply to the summary of the show-cause notice either as no date or time was indicated therein. The adjudication order has been passed thereafter confirming this liability towards tax, penalty and interest indicated in the summary of show-cause notice in case of each of the writ petitioners - Learned counsel for the State has not been able to dispute that the summary of show-cause notice in Form GST DRC-01 in case of individual petitioners and the adjudication order also in case of individual petitioners are in the same language and format and that no opportunity whatsoever was given to the individual petitioners to furnish reply to the summary of show-cause notice. The summary of the order in Form GST DRC 07 has been issued in individual cases conveying the assessment of liability towards tax, interest and penalty adjudged by the State Tax Officer on wrongful availment of ITC without receipt of goods in contravention of Section 16(2) using fraudulent methods in case of individual petitioners in like manner. It is evident that without proper opportunity of furnishing reply to the show-cause notice and without supplying the relied upon documents referred to in the inspection report, the petitioners have been prejudiced in defending themselves. The petitioners may have also lost the opportunity to cross-examine such persons as are relied upon by the tax authorities to support the impugned proceedings. Since the impugned proceedings are clearly in violation of principles of natural justice and the procedure prescribed under the JGST Act, the petitioners are justified in approaching this Court in writ jurisdiction. The impugned show-cause notice, the adjudication orders and the summary of the order/demand notice in DRC-07 in the case of the individual petitioners cannot be sustained in the eyes of law and on facts - the respondents State Tax authorities are at liberty to initiate fresh proceedings by issuing a proper show-cause notice in respect of the individual writ petitioners relating to the relevant tax periods and take a decision thereupon in accordance with law - petition allowed.
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