Case Law Details
Rajkumar Singhal, Sole Proprietor Shri Balaji Agro Industries Vs The Goods And Services Tax Network & Ors. (Delhi High Court)
Show cause notice and REG 31 is liable to be set aside, If same is not served as per provision of GST Act – Delhi HC
Introduction: In the recent case of Rajkumar Singhal, sole proprietor of Shri Balaji Agro Industries, the Delhi High Court addressed the validity of a show cause notice (SCN) and Form GST REG 31. The petitioner challenged the SCN on grounds of procedural irregularities, including the absence of necessary details and attachments. Let’s delve into the detailed analysis of this significant judgment.
Detailed Analysis: The petitioner raised several issues regarding the defective nature of the SCN. Firstly, it lacked essential details such as the name and designation of the issuing officer. Secondly, although reference was made to supportive documents, none were attached to the SCN. Thirdly, the SCN bore digital signatures of the Goods and Service Tax Network instead of the proper officer’s signature. Additionally, Form GST REG 31, which purportedly supported the SCN, was physically dispatched to the petitioner instead of being served electronically as required by law.
The Court scrutinized Rule 21A of the Central Goods and Services Tax Act, 2017, which mandates electronic intimation of contraventions to the concerned party. It emphasized that physical dispatch of Form GST REG 31 does not comply with the prescribed mode of service. Moreover, the Form GST REG 31 produced in court did not align with the SCN’s allegations.
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