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2023 (5) TMI 848 - HC - GST
Validity of SCN - SCN challenged on the ground that it does not satisfy the requirements of provision r/w Rule 142 of GST Rules - SCN not communicating the relevant information and material thereby disabling the petitioner to respond to the same - violation of principles of natural justice - HELD THAT:- Bare reading of the show cause notice (Annexure P-1) 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 a complete Code in itself which prescribes for various stages for determination of wrongful utilization of ITC while following the concept 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.
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 in the case of M/s Sidhi Vinayak Enterprises Vs. The State of Jharkhand & ors [2023 (2) TMI 226 - JHARKHAND HIGH COURT] holding that he 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, the challenge is maintainable in exercise of writ jurisdiction of this Court.
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 (Annexure P-1) is vitiated for the same being vague - Petition allowed.