GST SCN worded as Final Order Without Proper Hearing Unsustainable: Gujarat HC

By ANANDADAY MISSHRA Goods and Services Tax Judiciary December 26, 2024

TaxGuru Citation: 2024 taxguru.in 6379
Case Name: Maheshwari Logistics Limited Vs State of Gujarat & Anr. (Gujarat High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Gujarat High Court

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Maheshwari Logistics Limited Vs State of Gujarat & Anr. (Gujarat High Court)

In the case of Maheshwari Logistics Limited Vs State of Gujarat, the Gujarat High Court addressed a challenge to show cause notices and an order issued by the respondent under the Goods and Services Tax (GST) Act for the financial year 2017-18. The petitioner, engaged in logistics and paper manufacturing, had been issued show cause notices on 24.11.2023 and 28.12.2023 alleging wrongful Input Tax Credit (ITC) availed from a non-existent firm. The petitioner contended that these notices were effectively final orders, as the tax liability had been predetermined, and they were issued without providing an opportunity for a hearing, violating Section 75(4) of the GST Act. The Court found that the respondent had pre-determined the demand, making the notices unsustainable in law. As a result, the Court quashed both the show cause notices and the final order dated 29.12.2023. The matter was remanded to the respondent for initiating fresh proceedings and issuing new notices in compliance with the law within twelve weeks.

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

1. By this petition preferred under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following main reliefs:-

“(a) That this Hon’ble Court may be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction, quashing and setting aside the Impugned Order dated 29.12.2023 passed by the Respondent No.2 at Annexure-J.

(b) That this Hon’ble Court may be pleased to issue a writ of Mandamus or any other appropriate writ, order or direction, quashing the Show Cause Notices dated 24.11.2023 and 28.12.2023 issued by the Respondent No.2 at Annexure-E and Annexure-I respectively.

2. The brief facts of the case are as under :-