Abbott Heathcare Private Limited Vs Excise and Taxation Commissioner and Ors (Punjab and Haryana High Court)
The Hon’ble Punjab and Haryana High Court held that a show cause notice issued under Section 73 of the CGST Act without specific details or supporting basis is vague, non-specific, and unsustainable in law. The petitioner challenged the notice alleging excess availment of input tax credit, ITC mismatch, and short payment of tax on the ground that the allegations were unsupported by computations, particulars, or documentary basis. The Court observed that Section 73(3) specifically requires the Department to provide “details” of tax allegedly unpaid or ITC wrongly availed so that the assessee can effectively respond. It further noted that the impugned notice merely reproduced allegations mechanically without any supporting material and even incorrectly referred to audit findings. Holding that such absence of particulars violates principles of natural justice, the Court quashed the show cause notice. The judgment reiterates that vague and non-speaking notices cannot form the basis for GST proceedings.
Facts:
Abbott Heathcare Private Limited (“the Petitioner”) is an assessee against whom a show cause notice under Section 73 was issued alleging excess availment of input tax credit, mismatch in ITC, and short payment of tax.
