HC Set Aside Assessment Order Since SCN Issued to Assessee was Vague in Nature
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- Last Updated on 20 May, 2023
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Case Details: Durge Metals v. Appellate Authority and Joint Commissioner State Tax - [2023] 150 taxmann.com 333 (Madhya Pradesh)
Judiciary and Counsel Details
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- Sheel Nagu & Hirdesh, JJ.
- Kapil Duggal, Adv. for the Petitioner.
- Darshan Soni, Adv. for the Respondent.
Facts of the Case
The petitioner filed writ petition before the High Court and contended that show cause notice issued to petitioner was vague to extent of not communicating relevant information and material. Due to this reason, it was not able to respond to same and therefore, all consequential actions of passing of order and rejection of appeal were illegal.
High Court Held
The Honorable High Court noted that Section 75 of CGST Act itself prescribes for affording reasonable opportunity and it is incumbent upon revenue to afford same to assessee and any deficiency in that regard vitiates end result. In the instant case, the SCN was vague in nature as it neither contained the material and information nor the statement containing details of ITC transaction under question.
However, the petitioner didn’t specifically raised the said ground before the Appellate Authority but the fact would remain that mandatory provisions of Section 74 of GST Act make it incumbent upon the Revenue to ensure the show cause notice to be speaking enough to enable the assessee to respond to the same. Therefore, the impugned orders and show cause notice were to be quashed with a liberty to competent authority to proceed in matter in accordance with law.
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