GST Personal Hearing should Not be fixed before Expiry of SCN Reply Period: Allahabad HC Quashes Notice [Read Order]
The court held that the authorities cannot curtail the statutory period of 30 days available to the assessee for reply by scheduling a hearing earlier.
Show - cause - notice - Taxscan
Show - cause - notice - Taxscan
The Allahabad High Court quashed a show cause notice (SCN) and subsequent cancellation of GST registration after finding that the personal hearing was fixed prematurely, before the expiry of the statutory reply period.
The petitioner, Bala Ji Medical Ajency, a proprietorship firm registered under GST in August 2022, was issued an SCN (GST REG-17) on 12 March 2024 for non-filing of returns. The notice granted 30 days to file a reply but simultaneously fixed the date of the personal hearing for 9 April 2024, three days before the 30-day reply period would expire.
The notice also failed to specify the venue for the appearance, as asserted by the petitioner. Subsequently, without further opportunity, the Assistant Commissioner cancelled the petitioner’s GST registration through an order dated 2 May 2024.
Justices Sangeeta Chandra and Brij Raj Singh observed that while the petitioner had defaulted in filing returns, the SCN itself was procedurally defective.
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It held that the authorities cannot curtail the statutory period of 30 days available to the assessee for reply by scheduling a hearing earlier. Such a notice, lacking both clarity and fairness, was held “bad in law.”
Accordingly, the SCN dated 12 March 2024 and the cancellation order dated 2 May 2024 were quashed. However, the Court observed that “We find from a perusal of the notice dated 12.03.2024 that the petitioner was given 30 days time from the date of service of notice to submit his reply the 30 days time would continue till 12.04.2024, however, the petitioner was directed to appear before the Jurisdictional Officer before such time expired on 09.04.2024. The notice issued to the petitioner is bad in law. The notice dated 12.03.2024 is quashed. The Consequential Order dated 02.05.2024 is also quashed leaving it open for the respondent to issue fresh show cause notice to the petitioner.”
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