Smti. Jayshree Jhunjhunwala Vs Union of India (Meghalaya High Court)
The writ petition challenged an ex-parte order dated 22.12.2023 issued under Section 73 of the Meghalaya Goods and Services Tax Act, 2022, which demanded reversal of Input Tax Credit along with interest and penalty. The petitioner, a former proprietor of a firm, had sold the business to a third party in September 2021, and her GST registration was subsequently cancelled with effect from 09.11.2022.
The petitioner contended that no show cause notice was served upon her in a manner ensuring actual knowledge, and she became aware of the proceedings only in April 2025 through communication from a recovery officer. It was argued that issuance of notice through electronic mode after cancellation of registration, without physical service, violated principles of natural justice.
The respondents submitted that cancellation of registration does not absolve liability for prior transactions.
The Court noted that there was no evidence of physical or effective service of the show cause notice before passing the ex-parte order. It held that the petitioner was not given an opportunity to defend herself, thereby violating principles of natural justice.
Accordingly, the Court set aside the impugned ex-parte order and granted the petitioner three weeks to file a reply to the show cause notice. It directed the authority to pass a fresh order after providing due opportunity of hearing.
