GST SCN Issued Based on Unshared Verification Report: Madras HC Declines to Quash SCN, Orders Dept to Provide Report [Read Order]

The Madras High Court, while declining to quash the Show Cause Notice ( SCN ) ordered the Goods and Services Tax ( GST ) department to provide the copy of the verification report which was the basis of the show cause notice.

The petitioner, a sole proprietor of Tvl. Sri Sai Company engaged in container transport services, challenged the validity of the show-cause notices dated 26.03.2025, alleging that they were issued without adherence to principles of natural justice.

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According to the petitioner, an earlier inspection had been conducted by the Joint Commissioner, Chengalpattu Intelligence Division, on 08.10.2024, during which all GST records and explanations were submitted, and the matter was concluded without incident.

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However, the petitioner later received show-cause notices proposing heavy penalties under Section 122 of the TNGST Act, based on an alleged verification dated 23.08.2024, a verification the petitioner claims never took place. Furthermore, the petitioner contended that a copy of the verification report was never furnished, denying them a fair opportunity to respond.

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During the hearing, the petitioner’s counsel reiterated the violation of natural justice due to the failure to provide the foundational verification report.

The Court, after hearing both sides, declined to quash the show-cause notices but directed the department to provide the copy of verification report on representation submitted by the petitioner. The petitioner would then have a further two weeks to file a detailed reply to the show-cause notices.

Accordingly, the court disposed of.

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To Read the full text of the Order CLICK HERE

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