𝗖𝗮𝘀𝗲 𝗟𝗮𝘄 𝗦𝘂𝗺𝗺𝗮𝗿𝘆: 𝗦𝘂𝗱𝗵𝗮𝗸𝗮𝗿 𝗧𝗿𝗮𝗱𝗲𝗿𝘀 𝘃𝘀 𝗧𝗵𝗲 𝗦𝘁𝗮𝘁𝗲 𝗼𝗳 𝗔𝗻𝗱𝗵𝗿𝗮 𝗣𝗿𝗮𝗱𝗲𝘀𝗵

• 𝗖𝗼𝘂𝗿𝘁: Andhra Pradesh High Court • 𝗖𝗮𝘀𝗲 𝗡𝗼𝘀.: W.P. Nos. 6599 and 6601 of 2023 • 𝗗𝗮𝘁𝗲: 25-Apr-2023

𝗙𝗮𝗰𝘁𝘀: Sudhakar Traders, an assessee dealing in the supply of iron and steel, received a Show Cause Notice (Form ASMT-10) from the Deputy Commissioner. This notice required an explanation for discrepancies observed in the GST returns filed for the period from April 2019 to March 2021. The SCN was issued based on an alert from the Regional Vigilance & Enforcement Officer regarding these discrepancies.

𝗜𝘀𝘀𝘂𝗲: The central issue before the court was the authority of the Deputy Commissioner to issue the SCN. According to GST regulations, the issuance of such a notice for scrutinizing GST returns requires authorization from the Principal Chief Commissioner.

𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Andhra Pradesh High Court held that the Deputy Commissioner lacked the requisite authorization from the Principal Chief Commissioner. As the Deputy Commissioner did not have the authority to issue the SCN under these circumstances, the SCN was set aside.

𝗟𝗲𝗴𝗮𝗹 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: This judgment underscores the importance of compliance with procedural mandates concerning authority in tax matters. For a valid SCN under GST, it is essential that the issuing officer is duly authorized by the Principal Chief Commissioner. The case emphasizes the principle that procedural deficiencies, especially concerning authorization, can render notices invalid.

𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: Tax authorities must ensure that all procedural and authorization requirements are strictly followed before issuing notices to avoid their invalidation on technical grounds. Team GSTpanacea 7503031378