Allahabad High Court clarifies on GST Form

Allahabad High Court clarifies on GST Form

It provides the assessee an opportunity to resolve the dispute in case of disagreement

A division bench of the Allahabad High Court has observed that the requirement of pre-show-cause notice by the Goods and Services Tax (GST) authorities is aimed at reducing the number of litigations. The department is bound to follow the principles of natural justice during the proceedings.

The department contended before the court that there was no requirement to send a statement under (CGST) Central Goods and Services Tax Rules because of the amended October 2020 Central Board of Indirect Taxes and Customs (CBIC) Notification by the Ministry of Finance (Department of Revenue), Government of India.

The division bench comprising Justice Surya Prakash Kesarwani and Justice Jayant Banerji held that the perusal of the GST Form under the Rules indicates that it was pre-show-cause notice intimation to the assessee.

The bench said, "Such an intimation in the GST Form provides an opportunity to the dealer to resolve the dispute by depositing or in case of disagreement to face the adjudication proceedings under the Act. Thus, prima facie, it appears that the Rule afforded an opportunity to the dealer/assessee on a pre-show-cause notice stage, which would benefit both - the assessee and the department and also reduce litigation."