The Madhya Pradesh High Court quashed the demand order as a foundational show-cause notice of the financial year and tax period was never communicated to an individual.
The grievance of the petitioner, M/s Shri Shyam Baba Edible Oils is that while raising the demand of tax the foundational show-cause notice/order qua the financial year 2018-2019 and tax period April 2018 to March 2019, was never communicated to the petitioner who is an individual registered under GST Act.
The petitioner has highlighted the provision of Rule 142(1) of CGST Act to contend that the said provision statutorily obliges the revenue department to communicate show-cause notice/order by uploading the same on the website of revenue so that the aggrieved person can have access to the same and be aware of reasons behind the demand to enable the aggrieved person to avail alternative remedy before the higher forum under CGST Act.
The only mode prescribed for communicating the show-cause notice/order is by way of uploading the same on the website of the revenue.
The court noted that the State in its reply has provided no material to show that show-cause notice/order was uploaded on the website of revenue. In fact, AAG fairly concedes that the show-cause notice/order was communicated to the petitioner by email and was not uploaded on the website of the revenue.
The division bench of Justice Sheel Nagu and Justice Rajeev Kumar Shrivastava while allowing the petition held that statutory procedure prescribed for communicating show-cause notice/order under Rule 142(1) of CGST Act having not been followed by the revenue, the impugned demand pertaining to the financial year 2018-2019 and tax period April 2018 to March 2019 deserves to be and is struck down.Subscribe Taxscan AdFree to view the Judgment