Case Title | Bum Bum Corporation vs State of Madhya Pradesh |
Court | Madhya Pradesh High Court |
Honorable Judges | Justices Sheel Naghu and Justice Dwarka Dhish Bansal |
Citation | 2022 (8) GSTPanacea 142 HC Madhya Pradesh WRIT PETITION No. 25883 of 2021 |
Judgement Date | 18-August-2022 |
Council for Petitioner | Mr. Mohan Sausarkar and Ayush Gupta |
Council for Respondent | Mr. Darshan Soni |
The High Court of Madhya Pradesh, Justices Sheel Naghu and Dwarka Dhish Bansal , held that if the petitioner has replied to the the SCN 8, then the petitioner is directed to submit a reply to the same within 30 days and if not replied to the show cause notice respondent shall proceed to pass appropriate orders in accordance with law as expeditiously as possible
FACTS OF THE CASE
This petition was initially filed against the show cause notice issued under Section 74 of the GST Act, 2017 dated 15.09.2021. The Challenge was primarily based on the ground that the same did not inform the petitioner of the exact reasons thereby disabling the petitioner to file an effective reply.
However, in response to the impugned show cause notice Annexure-P-4, reply was submitted vide (Page 54 of the compilation) primarily raising the ground of absence of reasons disabling the petitioner to file a reply.
During pendency of this petition, a fresh show cause dated 24.12.2021 has been issued which is at page 29 of the reply submitted by the respondents on 21.02.2022.
COURT HELD
The Court held that subsequently issued show cause notice dated 24.12.2021 mentions the reasons behind its issuance and, therefore, the grievance of the petitioner stands satisfied. If the petitioner has not yet filed any reply to the said show cause notice dated 24.12.2021 issued under Section 74 of M.P.G.S.T Act 2017 in relation to the assessment year 2017-18, then the petitioner is directed to submit a reply to the same within 30 days and with a corresponding direction to the competent Authority to decide it as expeditiously as possible.
If a reply has already been submitted to the subsequently issued show cause notice dated 24.12.2021, then the same shall be considered along with earlier reply (at page 54 of writ petition) and the competent authority i.e. respondent No.3 shall proceed to pass appropriate orders in accordance with law as expeditiously as possible.
With the aforesaid observations, the petition stands disposed off.
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse that when a show cause notice is issued under GST Act, it shall clearly state the reasons and offence which is committed by the applicant, if the same is not been stated then such show cause notice does not stand correct in the eyes of the law.
Honourable Supreme Court in the case of Brindavan Beverages the mandatory content of Show Cause Notice was explained. This case is a landmark judgement as far as allegations and purposes of SCN is concerned.
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