While refusing to quash the Show Cause Notice (SCN), the Madras High Court directed the Goods and Services Tax (GST) department to provide a copy of the verification report that formed the basis of the notice.
The validity of the SCNs dated 26.03.2025 is being contested by the applicant, a sole proprietor of Tvl. Sri Sai Company, which is engaged in container transport services, alleges that they were issued in violation of the principles of natural justice.
The Joint Commissioner, Chengalpattu Intelligence Division, on 08.10.2024, previously performed an inspection where all GST records and explanations were furnished and the case was concluded without incident, the applicant cited.
Subsequently, the SCN was issued to the applicant for heavy penalties under Section 122 of the TNGST Act, based on an alleged verification dated 23.08.2024, a verification that was never actually conducted. The applicant contended that a copy of the verification report was never provided, thereby denying them a fair opportunity to respond.
The counsel of the applicant in the hearing said that due to the failure to furnish the foundational verification report, a breach of natural justice exists.
Post hearing both sides, the court refused to quash the SCNs, though it asked the department to furnish a copy of the verification report on the representation furnished by the applicant. After that, the applicant has been given an additional 2 weeks to submit a detailed response to the SCNs.
Thereafter, the court disposed of it.
