The Madras High Court (HC)in its significant proceeding held that a Show Cause Notice (SCN) on the wrong availing of Input Tax Credit against the assessee is not valid without a personal hearing
S. Kaja Mohideen, the petitioner has challenged the show cause notice. The petitioner having closed down his business in the year 2013 itself, the allegations levelled in the show cause notice are arbitrary and illegal. Further stated that the petitioner has not committed any irregularity and the fifteen suppliers mentioned in the show cause notice are in no way connected with the petitioner and are not known to him.
Based on the alleged wrong availing of Input Tax Credit, the respondents have issued the impugned show cause notice. The petitioner has also sent a detailed reply to the impugned show cause notice on 10.02.2023 and stated that they have raised a Writ Petition.
Even before a final order could be passed by the respondents, after giving due consideration to the petitioner’s reply, the petitioner approached this Court challenging the impugned show cause notice which is premature. The respondents will have to certainly give due consideration to the objections raised by the petitioner in his reply dated 10.02.2023 and only after affording a personal hearing to him, is entitled to pass a final order.
The petitioner appeared for the personal hearing and requested one more personal hearing for the petitioner. No prejudice would be caused to the respondents if one more personal hearing is afforded to the petitioner.
A Single member Coram comprising of Justice Abdul Quddhose directed the petitioner to appear for a personal hearing with the respondents on 02.03.2023 at 10:30 a.m. and the respondent to pass final order after affording a personal hearing to the petitioner, after giving due consideration to the reply dated 10.02.2023 submitted by the petitioner and after adhering to the principles of natural justice.
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