Star Facilities Management Ltd. Vs Deputy Commissioner Office of the Deputy Commissioner State Tax (Allahabad High Court)
Summary: On 23rd January 2025, the Allahabad High Court ruled in the case of Star Facilities Management Limited Vs. Deputy Commissioner State Tax Meerut in Writ Tax No. 2344 of 2024, asserting that passing an order based on a Show Cause Notice (SCN) without providing a copy of the Special Investigation Branch (SIB) report violates principles of natural justice. The Court emphasized that the SIB report was the basis for issuing the SCN, and without access to it, the taxpayer could not effectively respond to the findings or identify discrepancies in the report. The Court rejected the GST Department’s argument that referencing the conclusions of the SIB in the SCN was sufficient, stating that the manner in which those conclusions were reached could not be deciphered from the notice alone. This judgment followed the precedent set in the case of M/s Lari Almira House, reinforcing the need for transparency and fair process in such proceedings. The Court concluded that the failure to supply the SIB report before issuing the order was a clear violation of natural justice, and the order should be quashed.
