Failure to Mention Allegations of Fake Invoice against Assessee is Invalid

[CA Bimal Jain]

The Hon’ble Bombay High Court in the case of ARCHANA TEXTILE CORPORATION VERSUS THE STATE OF MAHARASHTRA AND ORS. - 2022 (11) TMI 262 - BOMBAY HIGH COURT  held that, GST Notice which failed to mention allegations of fake invoices against the assessee is not valid and the warned the department to strictly give proper training to the officers.

Facts:

Archana Textile Corporation, (“the Petitioner”) contended that,  though the Assessment Order issued by the Respondent against the Petitioner, made observations and allegation about the fake invoices and fake forms, however, the Show Cause Notice  (“SCN”) issued did not contain any detail, claim or deduction which Petitioner allegedly made incorrectly. Therefore, the said act of the Respondent violates the principal of natural justice. SCN

Issue:

Whether the SCN issued to the an assessee/taxpayer without should contain each and every accusation made against the assessee/taxpayer?

Held:

The Hon’ble Bombay High Court, in ARCHANA TEXTILE CORPORATION VERSUS THE STATE OF MAHARASHTRA AND ORS. - 2022 (11) TMI 262 - BOMBAY HIGH COURT  held as under:

• The SCN issued to the Petitioner did not contain any details of sales, claims, or deductions that the petitioner had made, claimed, or recorded wrongly.
• That it was the duty of the Respondent to provide all the details to the Petitioner and directed that every SCN issued by respondents in future should contain every detail required to be effectively responded mandatorily.

The Hon’ble Court set aside the Assessment Order and the SCN issued to the Petitioner with the direction that Respondent may issue fresh SCN to the Petitioner containing every detail by which Respondent feels that tax has been evaded.

 

(Author can be reached at info@a2ztaxcorp.com)