Notice Under Rule 142 of CGST Act Must be Uploaded on Revenue’s website and Not via E-Mail

Notice Under Rule 142 of CGST
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The Honorable M.P. High Court held that Show Cause Notice Under Rule 142 of CGST Act Must be Uploaded on Revenue’s website and Not via E-Mail. The brief to the case is appended below : – 

Case Title : Shri Shyam Baba Edible Oils vs.  Chief Commissioner

Court : High Court of Madhya Pradesh

Decision Date : 19 Nov 2020

Brief the Case : Instant petition invoking writ and supervisory jurisdiction of present Court under Articles 226 and 227 of Constitution of India, 1950 is filed praying for issuance of writ of certiorari for quashing the impugned order passed by the Respondents. Grievance of the Petitioner is that, while raising the demand of tax vide summary of order dated 18th September, 2020, the foundational show-cause notice/order dated 10th June, 2020 qua financial year 2018-2019 and tax period April, 2018 to March, 2019, was never communicated to the Petitioner who is an individual registered under GST Act.

Learned counsel for the Petitioner has drawn the attention of present Court to the provision of Rule 142(1) of Central Goods and Services Tax (CGST) Rules, 2017 (CGST Act) to contend that, the said provision 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 CGST Act.

As per Rule 142 of CGST Act, the only mode prescribed for communicating the show-cause notice/order is by way of uploading the same on website of the revenue. The State in its reply has provided no material to show that show-cause notice/order No.12 dated 10th June, 2020 was uploaded on website of revenue. The show-cause notice/order was communicated to Petitioner by E- mail and was not uploaded on website of the revenue. It is trite principle of law that, when a particular procedure is prescribed to perform a particular act then all other procedures/modes except the one prescribed are excluded. This principle becomes all the more stringent when statutorily prescribed as is the case herein.

Present 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 pertaining to financial year 2018-2019 and tax period April, 2018 to March, 2019 deserves to be and is struck down. Accordingly, instant petition stands allowed with liberty to the revenue to follow the procedure prescribed under Rule 142 of CGST Act by communicating the show-cause notice to the Petitioner by appropriate mode thereafter to proceed in accordance with law.

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