SCN & adjudication order are not sustainable if opportunity to file reply is not provided: HC

Case Details: Jai Jawan Kastha Bhandar v. State of Jharkhand - [2022] 140 taxmann.com 537 (Jharkhand)

Judiciary and Counsel Details

• • Aparesh Kumar Singh & Deepak Roshan, JJ.
  • Sumeet Gadodia, Ranjeet Kushwaha & Ms Aakansha Mittal, Advs. for the Petitioner.
  • Sachin Kumar, P.A.S. Pati, Amit Kumar, Sr. S.C. & Ashish Kr. Shekhar for the Respondent.

Facts of the Case

The department issued notice and adjudication order against the petitioner. The petitioner filed writ petition on the ground that the summary of show-cause notice had pre-judged and pre-decided the entire issue and had in fact fastened the liability towards tax, interest and penalty. It was also submitted that the show-cause notice (SCN) didn’t even indicate any date of hearing.

High Court Held

The Honorable High Court observed that date or time for furnishing reply had not been specified in impugned SCN. Moreover, the department had not disputed the allegation that summary of SCN and adjudication order were in same language and format and opportunity for filing reply had not been provided. Since, the petitioner can’t defend without giving opportunity of filing reply or providing documents referred to in inspection report and lost the opportunity to cross examine persons relied on by department. Therefore, the impugned SCN, adjudication order and summary of order were not sustainable and liable to be set aside.