Topic
The Gauhati HC held a Section 73(2) CGST show cause notice dated 29 Nov 2024 timely as three months remained after excluding the notice date, letting the appellant reply. This clarifies the GST notice limitation period and affects taxpayers.
The Allahabad High Court has ruled that tax authorities cannot schedule a personal hearing on the same day or after the deadline for replying to a show cause notice. This upholds the foundational principle of natural justice in tax adjudication, ensuring taxpayers have meaningful time to respond before any adverse order is passed.
Allahabad HC quashes GST adjudication order for violating Section 75(7) of the UPGST Act, holding that tax authorities cannot impose demands higher than those proposed in the show-cause notice. The ruling reinforces procedural fairness, mandating strict compliance with statutory limits in tax proceedings.
The Karnataka High Court has ruled that even if a taxpayer fails to file a written reply to a show-cause notice under Section 74 of the CGST Act, the tax authority must still afford a meaningful opportunity of hearing before passing an adjudication order. This reinforces natural justice in tax proceedings and invalidates mechanical adjudications based solely on non-response, protecting businesses from arbitrary recovery actions.