Guru Cycle Mart Vs State Tax Officer (Intelligence)
Date: June 13, 2024
Subject Matter
Form GST DRC-01 issued without show cause notice: Order quashed
Summary
In the case of Guru Cycle Mart versus the State Tax Officer, the Madras High Court addressed the issuance of Form GST DRC-01 without a prior show cause notice, which the petitioner argued was a violation of natural justice. The petitioner received intimation notices, specifically DRC-01A and DRC-01, but contended that they were not accompanied by a formal show cause notice. After responding to these notices, the petitioner challenged two subsequent orders dated May 3 and May 6, 2024, issued under Section 73 of the TNGST Act. The High Court found that the orders were issued without adhering to principles of natural justice, particularly the right to a fair hearing. Thus, the Court quashed the orders and ruled that they should be treated as an addition to the notice in DRC-01. The petitioner was granted 30 days to respond to the revised proceedings, and the respondent authority was instructed to complete the proceedings within three months. The Court allowed the writ petitions without costs and closed related miscellaneous petitions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard Mr. A. Satheesh Murugan, learned counsel for the petitioner and Mr. R. Suresh Kumar, learned Additional Government Pleader for the respondent.
2. By this common order, both the writ petitions are being disposed of.
3. In these writ petition, the petitioner has challenged the impugned orders passed under Section 73 of the TNGST Act, 2017 dated 03.05.2024 and 06.05.2024.
4. The case of the petitioner is that although intimation in DRC-01A and DRC 01 was issued, DRC-01 did not accompany any show cause notice. It is further submitted that the petitioner had replied to the intimation notice dated 04.09.2023. However, without issuance of the show cause notice along with on 02.05.2024 and 03.05.2024. Hence, the petitioner is before this Court.
5. Having considered the submissions of the learned counsel for the petitioner and the learned counsel for the respondents, it is evident that the impugned orders have been passed in violation of principles of natural justice.
6. Considering the same, the impugned orders are quashed and the same shall be treated as addendum to the notice in DRC-01. The petitioner shall file a reply to the same within a period of 30 days from the date of receipt of a copy of this order. It is expected that the respondent will complete the proceeding within a period of 3 months thereafter.
7. The Writ Petitions stand allowed, accordingly. No costs. Consequently, connected Miscellaneous Petitions are closed.