Concord Tieup Pvt. Ltd. Vs State of Madhya Pradesh (Madhya Pradesh High Court)
In the case of Concord Tieup Pvt. Ltd. v. State of Madhya Pradesh [Writ Petition No. 26956 of 2022 dated April 25, 2023], the Madhya Pradesh High Court, in its esteemed judgment, nullified the order and directed a fresh hearing in light of the show cause notice issued. The court deemed the show cause notice invalid as it failed to include essential details such as the date, time, and venue of the personal hearing. Consequently, the court ordered a remittance of the case for a thorough reconsideration.
Facts:
M/s. Concord Tieup (P.) Ltd. (“the Petitioner”) was served with the notice of intimation of tax under Section 74(5) of the Madhya Pradesh Goods and Services Tax Act, 2017 (“MPGST Act”) (“the Notice”). The Petitioner submitted reply of the Notice on June 23, 2022.
Thereafter a show cause notice dated July 22, 2022 under section 74 of the MPGST Act was issued (“the SCN”). The SCN inter alia mention about personal hearing to the effect that “you may appear before the undersigned for personal hearing either in person or through authorized representative for representing your case on the date, time and venue, if mentioned in table below”, however, no date, time and venue for personal hearing was shown in the SCN.
Thereafter, on August 24, 2022 the Revenue Department passed an order under Section 74 of the MPGST Act (“the Impugned Order”).
The Petitioner filed writ before the High court and contended that as per Section 75(4) of the MPGST Act, before passing the Impugned Order, personal hearing is necessary, which should be mentioned in the notice itself, as such in absence of personal hearing, the Impugned Order is not sustainable.
Issue:
Whether Revenue Department can issue the SCN without providing the date, time and venue for personal hearing and pass order on the basis of such SCN?
Held:
The Hon’ble Madhya Pradesh High Court in Writ Petition no.26956 of 2022 held as under:
