Assessee directed to raise all contentions while responding to the GST show cause notice.

Assessee directed to raise all contentions while responding to the GST show cause notice.

Summary in Key Points:

• Issue: Whether the assessee can challenge the validity of a seizure order and subsequent proceedings on the grounds of non-compliance with procedural requirements under Section 67 of the GST Act.
• Facts: The assessee challenged a seizure order, arguing that the procedure under Section 64(2) was undertaken without complying with the requirements of Section 67(1), which deals with inspection, search, and seizure. The revenue department contended that the communication merely provided an opportunity for hearing.
• Decision: The High Court held that the assessee could raise all permissible objections, including those related to Section 67(1), while responding to the show cause notice. Since the communication only provided an opportunity for hearing, the court found no need to interfere at this stage.

Decision:

The High Court ruled in favor of the revenue department, disposing of the writ petition with specific directions. The court clarified the following:

• Opportunity to Raise Objections: The assessee has the right to raise all permissible objections, including those related to the procedural requirements of Section 67(1), while responding to the show cause notice.
• No Interference at This Stage: Since the communication in question merely provided an opportunity for a personal hearing after noting discrepancies, the court found no reason to interfere at this stage.
• Disposal with Liberty to Raise Contentions: The writ petition was disposed of with liberty granted to the assessee to raise all their contentions regarding the validity of the proceedings during the adjudication process.

Important Note: This case highlights the importance of following proper procedures during inspection, search, and seizure under the GST Act. It also emphasizes the assessee’s right to challenge the validity of such proceedings and raise objections during the adjudication process. This decision ensures that assessees have a fair opportunity to present their case and defend their rights in GST proceedings.