Hari Shanker Transport Vs Commissioner of Commercial Tax U.P. Lucknow and another (Allahabad High Court)
Allahabad High Court rules GST orders must be self-contained with detailed facts and basis, not merely reference show cause notices, citing Section 75(6) violation; GST Orders Must Detail Facts and Basis, Rules Allahabad High Court; Orders Cannot Solely Rely on Referring to Prior Notices.
The Allahabad High Court recently held that Goods and Services Tax (GST) orders passed by tax authorities must be self-contained documents that clearly set out the relevant facts and the basis of the decision, as mandated by Section 75(6) of the GST Act, 2017. The court emphasized that merely referencing previous show cause notices in the final order is insufficient and renders the order legally unsustainable.
The ruling came in the case of M/s Hari Shanker Transport versus Commissioner of Commercial Tax U.P. Lucknow and another, where the petitioner challenged a tax liability order issued under Section 73(9) of the GST Act and a subsequent rejection of a rectification application under Section 161.
According to the petitioner, the process began with a notice under Section 61 of the Act, which indicated discrepancies in their tax return. This notice was reportedly uploaded on the departmental portal, and the petitioner claimed to be unaware of it, consequently failing to file a reply. This led to the issuance of a show cause notice under Section 73, providing a deadline for a response and scheduling a personal hearing. The petitioner again did not file a reply, resulting in the impugned order dated April 27, 2024, under Section 73(9), which imposed a tax liability of Rs. 85,84,759. A rectification application filed by the petitioner under Section 161 was subsequently rejected by an order dated October 25, 2024.
