This Court has no manner of doubt that statutory procedure prescribed for communicating show-cause notice/order under Rule 142(1) of CGST Act having not been followed by the revenue, the impugned demand deserves to be and is struck down.
Section 74 of the CGST Act, 2017 and Rule 142 of CGST Rules— Service of Show Cause Notice – The petitioner prayed for quashing the impugned order in Form GST DRC-07 dated 18.09.2020 and orders under section 74 dated 10.06.2020; to direct the respondents to comply with the provisions of Act and upload notices and orders only on the GSTN Portal as mandated under law. The petitioner submitted that while raising the demand of tax vide summary of order dated 18.09.2020 the foundational show-cause notice/order No.12 dated 10.06.2020 qua financial year 2018-2019 and tax period April, 2018 to March, 2019, was never communicated to him. The petitioner submitted that there is violation of principle of natural justice as per Rule 142. The respondent submitted that show-cause notice/order No.12 dated 10.06.2020 was communicated on E-mail address and despite receiving the same the petitioner failed to file any response. The petitioner submitted that in terms of Rule 142(1) statutorily obliges the revenue department to communicate show-cause notice/order by uploading the same on the website of revenue so that the aggrieved person can have access to the same and be aware of reasons behind the demand to enable the aggrieved person to avail alternative remedy before the higher forum under Act. The court observed that provisions reveal that the only mode prescribed for communicating the show-cause notice/order is by way of uploading the same on website of the revenue. The statutory procedure prescribed for communicating show-cause notice/order under Rule 142(1) having not been followed by the respondent,
Held that:- The Hon’ble High Court allowed petition, quashed the demand with liberty to the revenue to follow the procedure prescribed under Rule 142 by communicating the show-cause notice to the petitioner by appropriate mode thereafter to proceed in accordance with law.