Writ Jurisdiction Can’t be Exercised at SCN Stage When it Contains Necessary Details and Grounds | Allahabad HC

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  • Last Updated on 2 September, 2023

vague tax notice

Case Name: Abhay Traders v. Commissioner Commercial Tax U.P. - [2023] 153 taxmann.com 725 (Allahabad)

Judiciary and Counsel Details

    • Siddhartha Varma & Arun Kumar Singh Deshwal, JJ.
    • Aloke Kumar for the Petitioner.
    • Ankur AgarwalGopal Verma for the Respondent.

Facts of the Case

The petitioner received a notice alleging that it had made bogus purchases and credit was wrongly claimed. The petitioner was directed to reply why tax, penalty and interest would not be imposed upon the petitioner. The petitioner filed writ petition to challenge the notice by contending that the notice itself was vague and bad in law and, therefore, be quashed and set aside.

High Court Held

The Honorable High court noted that the requirement of principles of natural justice by a show cause notice can only be met if a show cause notice contains the material/ground which, according to the department necessitates an action and the particular penalty/action which is proposed to be taken.

In the present case, it was specifically mentioned in the notice that there was no actual supply of goods on 12th June, 2018 by M/s Raghav Enterprises to petitioner and the petitioner was directed to submit reply to the notice and it was stated that if no reply was furnished then order under section 74(9) of CGST Act, 2017 would be passed.. Therefore, the Court dismissed the petition since notice contained necessary details and grounds and there was no ground for quashing same under Article 226 of Constitution of India.

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