Case Law Details
Daksh Enterprise Vs Commissioner Of State Tax (Gujarat High Court)
Introduction: In a recent judgment, the Gujarat High Court addressed a critical issue involving natural justice principles in the context of a Goods and Services Tax (GST) matter. The case, Daksh Enterprise vs. Commissioner of State Tax, highlights the importance of granting an opportunity of hearing before passing an order in Form GST DRC-7.
Background: The petitioner in this case is Daksh Enterprise, a partnership firm with its registered office and principal place of business in Gir Somnath, Gujarat. The case revolves around a notice issued to the petitioner under Section 61 of the Central Goods and Services Tax (CGST) and Gujarat Goods and Services Tax (GGST) Acts.
The Show Cause Notice: On July 5, 2021, the petitioner received a notice under Section 61 of the CGST/GGST Acts. Subsequently, on February 7, 2022, the authorities issued a show cause notice or intimation in Form GST DRC-01. This notice included a demand against the petitioner for the financial year 2019-2020.
Response Filing: The crucial point of contention arises from the timelines provided in the show cause notice. It explicitly stated that the petitioner should submit a reply on or before February 20, 2022. The petitioner contends that it promptly responded to the show cause notice by submitting a detailed reply on February 19, 2022.
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