GST Update

 Desk of CA. Praveen Sharma – 964 Series (CAPS) 

GAUHATI HIGH COURT IN THE CASE OF HRD Commercial Industrial Security Force Private Limited 

 A taxpayer challenged a GST order passed against him, stating that no proper show cause notice was issued before passing the order.

The department had issued only a summary notice along with tax calculation details. The taxpayer argued that this cannot be treated as a proper notice, as it did not clearly ask him to explain or defend his case.

The Court observed that issuing a proper show cause notice is mandatory. A summary form is only an additional document and cannot replace the actual notice. Without a proper notice, the taxpayer does not get a fair chance to reply.

The Court also noted that no opportunity of personal hearing was given. Even if the taxpayer does not request a hearing, authorities must provide it before passing an adverse order.

Since both proper notice and hearing were missing, the Court held that the order violated principles of natural justice.

Accordingly, the Court set aside the order passed by the department. However, it allowed the department to start fresh proceedings by following proper procedure.

Summary notice is not equal to proper notice, and no order can be passed without giving a fair hearing.