Notice should mention specific Contravention and should be issued in the manner prescribed in law only to enable the taxpayers to defend themselves

Notice should mention specific Contravention and should be issued in the manner prescribed in law only to enable the taxpayers to defend themselves

Vikash Kumar Sing v. State of Jharkhand by Hon. Jharkhand High Court

The Jharkhand High Court has issued a judgment in two writ petitions relating to the tax period of April 2018 to March 2019. Both petitioners, who are engaged in civil construction and selling medicine, respectively, have challenged show-cause notices and summaries of orders issued under Section 73 of the JGST Act, 2017. The notices were issued by the Deputy Commissioner of State Tax, Jharkhand Goods and Service Tax, Godda.

The petitioners have argued that the show-cause notices are in violation of the provisions of Section 73(1) of the Act and a previous judgment rendered by the Court. They claim that the notices fail to provide relevant particulars or enumerate the contravention they are being asked to reply to. Additionally, they argue that the proceedings suffer from a serious violation of principles of natural justice and the procedure prescribed by law.

The Court found that the show-cause notices and summaries of orders issued by the Deputy Commissioner did not meet the requirements set forth in the Act and that there were serious violations of the principles of natural justice and procedure prescribed by law. As such, the Court has quashed the notices and ordered that the matters be remanded. The Court also found that the imposition of 100% penalty was impermissible under the Act and that no adjudication order had been uploaded. Finally, the Court noted that the GSTN provides a standard format in which notices can be issued, but that the Deputy Commissioner had failed to meet even these minimal requirements.

Girish Kulkarni