A LANDMARK JUDGEMENT MADE BY M P HIGH COURT

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A LANDMARK JUDGEMENT MADE BY M P HIGH COURT

29/11/2020

A LANDMARK JUDGEMENT MADE BY M P HIGH COURT

In the case of SHRI SHYAM BABA EDIBLE OILS V/S CHIEF COMMISSIONER AND ANOTHER.

The Grievance of the petitioner is that while raising the demand of tax vide summary of order dated 18.09.2020 the foundational show-cause notice/order No.12 dated 10.06.2020 qua financial year 2018-2019 and tax period April, 2018 to March, 2019, was never communicated to the petitioner who is an individual registered under GST Act.

As such on the question of violation of principle of natural justice on the anvil of Rule 142 of Central Goods and Services Tax Act, 2017, this Court requisitioned reply of the State.

State has filed reply on 11.11.2020 disclosing that show-cause notice/order No.12 dated 10.06.2020 was communicated to petitioner on his E-mail address and despite receiving the same the petitioner failed to file any response. Copy of show-cause notice/order No.12 dated 10.06.2020 is Annexure R/1 filed alongwith the reply.

Learned counsel for the petitioner has drawn the attention of this Court to the provision of Rule 142(1) of CGST Act to contend that the said provision statutarily obliges the revenue department to communicate show-cause notice/order by uploading the same on the website of revenue so that the aggrieved person can have access to the same and be aware of reasons behind the demand to enable the aggrieved person to avail alternative remedy before the higher forum under CGST Act.

In view of above discussion, this Court has no manner of doubt that statutory procedure prescribed for communicating show-cause notice/order under Rule 142(1) of CGST Act having not been followed by the revenue, the impugned demand dated 18.09.2020 vide Annexure P/2 pertaining to financial year 2018-2019 and tax period April, 2018 to March, 2019 deserves to be and is struck down.

Accordingly, instant petition stands allowed with liberty to the revenue to follow the procedure prescribed under Rule 142 of CGST Act by communicating the show-cause notice to the petitioner by appropriate mode thereafter to proceed in accordance with law.

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