Can summary order be passed without issuance of show cause notice?

issuance of show cause notice

Case Title

Ekta Supreme Corporation vs The Commissioner of State Tax and Another.

Court

Bombay High Court

Honorable Judges

Justice R.D.Dhanuka & Justice S.M.Modak

Citation

2022 (2) GSTPanacea 280 HC Bombay

W.P.No. 528 of 2021

Judgement Date

01-February-2022

Council for Petitioner

Ishaan Patkar

Nidhi Shah

Jindagi Shah

Council for Respondent

Jyoti Chavan

Section

Section 73 of CGST Act

In Favour of

Favour of Assessee

The Bombay High Court bench of Justice R.D.Dhanuka & Justice S.M.Modak has held that Respondent would issue a show-cause notice under Section 73 of CGST Act and as per the MGST Act to the Petitioner. The impugned Orders dated 12 December 2019 and 31 December 2019, being Exhibit are accordingly quashed and set aside

issuance of show cause notice​

FACTS OF THE CASE

The Petitioner under Article 226 of the Constitution of India, the Petitioner prays for quashing and setting aside the Orders dated 12 December 2019 and 31 December 2019, being Exhibit ‘D’ and Exhibit ‘E’, respectively, to the Petition. There are no other Orders passed by the Respondent-State, other than Summary of Orders issued by Respondent No.2 on 12 December 2019. Learned AGP, further on instructions states that Respondent No.2 would issue a show-cause notice under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and as per the provisions of Maharashtra Goods and Services Tax Act, 2017 (MGST Act) to the Petitioner and would pass a fresh Order after giving an opportunity of being heard to the Petitioner and in accordance with law.

issuance of show cause notice

COURT HELD

Considering the facts as recorded, held that the impugned Orders dated 12 December 2019 and 31 December 2019, being Exhibits ‘D’ and ‘E’, respectively, are accordingly quashed and set aside. The Respondents are permitted to issue a show-cause notice under Section 73 of CGST Act and MGST Act to the Petitioner. The Respondents shall grant an opportunity of being heard to the Petitioner and to file a reply to the show-cause notice.

issuance of show cause notice

ANALYSIS OF THE JUDGEMENT

Since the impugned Orders dated 12 December 2019 and 31 December 2021 do not survive, a garnishment and attachment Order dated 10 December 2021 also does not survive and is, accordingly, quashed and set aside. The Respondents are directed to decide the matter on its own merits in accordance with law and not being influenced by the observation made and the conclusion drawn in the impugned Orders dated 12 December 2019 and 31 December 2019 as expeditiously as possible and not later than twelve weeks from the date of receipt of this Order.

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Ekta Supreme Corporation

For Reference Visit:

Bombay High Court