Akash Garg Vs State of M.P. (Madhya Pradesh High Court)
Show Cause Notices (SCN) to Taxpayers Under GST Act Mandatory to Upload on Website – Mere E-Mail is not Suffice
1. The Honourable Madhya Pradesh Court in case of Akash Garg Vs State of M.P, vide order dated 19.11.2020 held that statutory procedure prescribed for communicating show-cause notice or order under Rule 142(1) of CGST Act is required to be followed mandatorily by the revenue. Rule 142 prescribes the manner to upload show-cause notices on Website. Thus, a mere e-mail of show-cause notices to the taxpayer would not suffice. Upload of such notices on the website is mandatory.
2. Brief Facts of the Case: The petitioner who is an individual registered person under GST Act received an order in Form GST DRC-07 dated 18.09.2020 for the year 2018-19 and 2019-20 along with other orders i.e. order under section 74.
The grievance of the petitioner is that while raising the demand of tax vide summary of the order dated 18.09.2020, the foundational show cause notice was never communicated to the petitioner who is an individual registered under GST Act.
3. Submission by the Respondent: State has filed a reply on 11.11.2020 disclosing that show-cause notice was communicated to petitioner on his E-mail address and despite receiving the same the petitioner failed to file any response.
4. Analysis of the issue The provision of Rule 142(1) of CGST Act statutorily obliges the revenue department to communicate show-cause notice/orders by uploading the same on the website of revenue so that the aggrieved person can have access to the same and be aware of reasons behind the demand to enable the aggrieved person to avail alternative remedy before the higher forum under CGST Act.
5. Statutory Provisions – Rule 142 of CGST Rules
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