The Kerala High Court directed re-adjudication under Kerala State Goods and Services Tax/Central Goods and Services Tax Act, 2017KGST Act. It was found that the assessee cannot reply without details on the alleged Violation of Rule 10 of Rule 96 of CGST Rules.
M/S N C John & Sons Pvt Ltd, the appellant filed the writ petition impugning the show cause notice issued under section 73 of the Kerala State Goods and Services Tax/Central Goods and Services Tax Act, 2017 ( ‘KSGST/CGST Acts’ ). The allegation in the show cause is that the appellant has violated sub-Rule (10) of Rule 96 of the Central Goods and Services Tax/ State Goods and Services Tax Rules ( ‘CGST/SGST Rules’ ) since it failed to pay applicable tax to avail an erroneous refund. The Single Judge disposed of the writ petition as per the judgment dated 2nd February 2024 permitting the appellant to file the reply within 10 days.
Sri.M.Balagopal, the counsel appeared for the appellant and Sri.V.K.Shamsudheen, the Senior Government Pleader appeared for the respondent.
The appellant stated that the details of an alleged violation of sub-Rule 10 of Rule 96 of CGST/SGST Rules have not been provided and in the absence of requisite details, it is not in a position to give a proper reply. The Government Pleader submitted that the SCN is only a show cause notice, and it is for the appellant to file a proper reply to the same and to substantiate that there is no basis for issuing such a notice to it.
A division bench of the Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath viewed that the appellant must, at least at the first instance, appear before the officer and show cause against the proposals. However, the counsel for the appellant is right in contending that the appellant is entitled to the materials based on which show cause notice was issued to it and without such materials, it may not be possible for the appellant to give a proper reply.
The Court disposed of the writ appeal by directing the appellant or its authorized representative to appear before the officer who issued Show Cause notice at the designated time on 22.02.2024.
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