The Tax Publishers 2024 TaxPub(GST) 869 (Jhar-HC) Central Goods and Service Tax Act, 2017
Sections 73 & 75(4)
Constitution of India, 1950, - Article 226
Where it was transpired that the summary show cause notice in terms of rule 142(1) did not comply with which is mandatory under section 73/74 of CGST/JGST Act 2017, the impugned order was liable to be set aside.
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Assessment - Show Cause Notice not served upon assessee - Validity of -
Revenue passed assessment order under section 61 against assessee fastening liability under the head taxes, interest and penalty. Assessee challenged the said order contending that it was never served with mandatory Show Cause Notice under section 73(1) of JGST Act, 2017 and was served with only Summary of Show Cause Notice under rule 142(1) of the JGST Rules, 2017. Further, submitted that it was issued with the GST DRC-07 manually. Held: It is a settled principle of law that any authority has to follow the principle of natural justice. In the instant case, the alleged show cause notice in terms of DRC-01 was issued under rule 142 of JGST Rule 2017, demanding tax, interest and penalty. However, from record it transpired that the summary show cause notice in terms of rule 142 (1) was not complied with which is mandatory under section 73/74 of CGST/JGST Act 2017. The provisions of 73 and 74 of the Act are mandatory in nature and from bare perusal it appeared that DRC-01 and 142(1) were not complied, therefore, on this score alone, the impugned order was set aside and the matter was remitted back to the adjudicating authority for re-adjudication.
REFERRED :
FAVOUR : In favour of assessee
A.Y. :
Central Goods and Service Tax Act, 2017
Sections 79 & 83
Constitution of India, 1950 - Article 226
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