Case Law Details
Nkas Services Private Limited Vs State of Jharkhand (Jharkhand High Court)
Proceedings under Section 74 of GST Act have to be preceded by a proper SCN – Jharkhand High Court quashed the Show Cause Notice (SCN) in respect of wrongful availment of Input Tax Credit (ITC) as it was vogue, unclear and lacked serious details.
M/s Nkas Services Private Limited (“the Petitioner”) has challenged the SCN issued under Section 74 of the Jharkhand Goods and Services Tax Act (“the JGST Act”) on the grounds that it was vague and does not disclose the offense and contraventions as it is a mere mechanical reproduction of the provisions of Section 74 without striking of the irrelevant portions. It was contended, by the Petitioner that the impugned SCN is incapable of any reply and does not fulfill the ingredients of a notice in the eyes of law.
As per the said SCN, the Petitioner would be denied the opportunity to properly defend itself. It is, therefore, in violation of the principles of natural justice. The essential requirements of the proper notice are that it should specifically state charges to which the notice has to reply.
The Petitioner has sought to quash the impugned SCN issued under Section 74 of the JGST Act being in violation of principles of natural justice and lacking in jurisdictional facts to initiate a proceeding under Section 74 of the CGST Act on the allegations that the Petitioner has wrongfully availed the ITC by reason of fraud or any willful misstatement or suppression of facts to evade tax or not paid or short paid or erroneously got a refund of any tax.
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