I. HIGH COURT
33 BLA Projects Pvt. Ltd vs. State of Jharkhand
2022 (62) GSTL 160 (Jhar.)
Date of Order: 2nd March, 2022
Show Cause Notice issued without stating the contravention made and without striking off irrelevant grounds was invalid
FACTS
Petitioner was engaged in the business of works contracts and mining-related activities. On scrutiny of returns, the Department issued a scrutiny notice in ASMT-10 seeking an explanation for a mismatch between GSTR 2A and GSTR 3B. Petitioner replied to show cause for such mismatch. Petitioner submitted a reply explaining his stand that the mismatch was for a partial amount. Later, a show cause notice (SCN) without striking irrelevant grounds and without indicating contravention made was issued along with a summary SCN in Form DRC 01 alleging excess availment of the input tax credit. Petitioner replied to SCN by highlighting the discrepancy between SCN and ASMT-10. However, ignoring the Petitioner’s submissions, a summary order was passed demanding tax, interest, and penalty. Aggrieved by such demand order, the Petitioner filed this writ petition before the High Court.
HELD
It was held that since SCN was issued without indicating the contravention and without striking off irrelevant grounds, it was liable to be quashed. Further, the order passed in violation of the principle of natural justice and manda
