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2023 (5) TMI 749 - HC - GSTPrinciples of natural justice - validity of SCN - show cause notice being vague and cryptic - Non-communication of relevant information and material thereby disabling the petitioner to respond - Section 74 and 75 of GST Act as well as Rule 142 of GST Rules - HELD THAT:- Bare reading of the show cause notice reveals that it neither contained the material and information nor the statement containing details of ITC transaction under question. Section 75 of GST Act is complete Code in itself which prescribes for various stages or determination of wrongful utilization of ITC which is required to subject to affording of reasonable opportunity of being heard to the assessee. Since the Statute itself prescribes for affording reasonable opportunity, it is incumbent upon the Revenue to afford the same and any deficiency in that regard vitiates the end result. In the case of Division Bench of Jharkhand High Court in M/s Sidhi Vinayak Enterprises Vs. The State of Jharkhand & ors [2022 (10) TMI 671 - JHARKHAND HIGH COURT] the facts and circumstances of which are similar if not identical to the facts and circumstance prevailing herein - The Jharkhand High Court has dealt with the provisions of Section 74 and 75 of GST Act as well as Rule 142 of GST Rules, and held that the impugned show cause notice in both the cases does not fulfill the ingredients of a proper show-cause notice and thus amounts to violation of principles of natural justice. In view of above and the following decision of the Jharkhand High Court, this Court has no manner of doubt that the very initiation of the proceedings by way of show cause notice is vitiated for the same being vague - petition allowed.
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