GST officer’s tax determination invalid due to improper show cause notice and denial of hearing opportunity under Section 73 and 75

GST officer’s tax determination invalid due to improper show cause notice and denial of hearing opportunity under Section 73 and 75Case-LawsGSTThe HC set aside the impugned order dated 19.12.2023, finding violations of natural justice principles and statu

GST officer's tax determination invalid due to improper show cause notice and denial of hearing opportunity under Section 73 and 75
Case-Laws
GST
The HC set aside the impugned order dated 19.12.2023, finding violations of natural justice principles and statutory requirements. The court held that the Proper Officer failed to issue a valid show cause notice under Section 73, as the summary in GST DRC-01 cannot substitute for a proper SCN. The determination of tax and attached order were deemed invalid due to lack of proper authentication by the Proper Officer, creating a regulatory gap requiring digital or e-signature authentication under Rule 26(3). The court found the order contravened Section 75(4) by denying reasonable opportunity of hearing, as the DRC-01 summary left hearing date fields blank and failed to provide personal hearing opportunity despite no reply submission. The petition was allowed.
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