Microtek Himachal Power Products Private Limited Vs State of Himachal Pradesh (Himachal Pradesh High Court)
Summary: In the case of M/s. Microtek Himachal Power Products (P.) Ltd. v. State of Himachal Pradesh, the Himachal Pradesh High Court addressed the legality of a demand order issued without a prior Show Cause Notice (SCN). The petitioner challenged an order dated June 20, 2023, which was issued under Section 74(9) of the CGST Act, arguing that it violated principles of natural justice due to the absence of a prior SCN as required by Section 74(1). The Revenue Department acknowledged the error, clarifying that the intent was to issue an SCN rather than a final demand. Accepting the Revenue’s submissions, the court directed that the impugned order be treated as an SCN, allowing the petitioner four weeks to respond. This decision aligns with previous rulings by other High Courts, reinforcing that demand orders for tax, interest, and penalties cannot be validly issued without prior notice. The court’s ruling emphasizes the necessity for proper procedural compliance in tax matters.
Introduction: The Hon’ble Himachal Pradesh High Court in the case of M/s. Microtek Himachal Power Products (P.) Ltd. v. State of Himachal Pradesh [CWP No. 5562 of 2023 dated June 26, 2024] disposed the writ petition and directed that the erroneous order passed with wrong description be treated as Show Cause Notice (SCN) and be further adjudicated upon after the filing of reply to the deemed SCN.
