No SCN, No Valid GST Penalty: Punjab & Haryana HC Reaffirms Natural Justice

Ankur Kampani Vs Union of India and others (Punjab and Haryana High Court) The Punjab & Haryana High Court held that a GST penalty order passed without issuing a prior show cause notice (SCN) or granting an opportunity of hearing is legally unsustainable as it violates the principles of natural justice and Section 75(4) of the CGST Act, 2017. In the case, the petitioner was subjected to a penalty of ₹4.03 crore under Section 122 of the CGST Act without any notice preceding the order. The Court noted that the absence of an SCN was an admitted fact and emphasized that procedural safeguards...