Alternative remedy against order not applicable when SCN is issued in violation of principles of natural justice

Last updated: 04 February 2023

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The Jharkhand High Court has ruled that a Show Cause Notice (SCN) issued under the CGST Act was invalid because it failed to comply with the principles of natural justice. The court found the SCN lacked specific charges and was not issued in the prescribed format, violating fair play. Consequently, the court set aside the SCN and the subsequent order, remanding the case for a fresh SCN to be issued in accordance with the law.

Court :
Jharkhand High Court

Brief :
The Hon'ble Jharkhand High Court in Santosh Kumar Roy v. the State of Jharkhand & Ors. [W.P.(T) No. 4782 of 2022 dated January 24, 2023] quashed and set aside the Show Cause Notice ("SCN") and the consequential order passed by the Revenue Department, on the grounds that the SCN issued to the assessee is not in strict compliance of Section 73 (1) of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). Held that, stating specific charges in the SCN is part of due procedure and fair play in action which are essential requirements of rule of law and has its genesis in Article 14 of the Constitution of India and since the principles of natural justice is not complied with, the ground of alternative remedy is not acceptable. Remanded back the matter to pass a fresh order after following the due procedure of law from the stage of issuing fresh SCN.

Citation :
W.P.(T) No. 4782 of 2022 dated January 24, 2023

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