Mr. Sharad Narula Proprietor Of M/S As Enterprises vs. Union Of INDIA & Anr.
Facts
The Petitioner, M/s AS Enterprises through its Proprietor Mr. Sharad Narula, filed a writ petition challenging an order dated 4th February, 2025, passed by the Principal Commissioner, Central Goods and Service Tax, North. The Petitioner initially claimed the Show Cause Notice (SCN) dated 24th May, 2022, was never issued to them. However, it was revealed that the SCN was sent via email to Mr. Ashish Narula at ashishnarula9@gmail.com on 25th May, 2022, and 26th May, 2022, along with Relied Upon Documents (RUDs). The Petitioner further argued the SCN was not uploaded on the GST portal and no notice for personal hearing was issued. The Court noted that the impugned order indicated personal hearing notices were issued and some parties appeared. The Court observed that the Petitioner had not disclosed the receipt of the SCN.
Held
The Court found that the Show Cause Notice (SCN) was indeed sent via email to Mr. Ashish Narula on 25th May, 2022, and 26th May, 2022, along with the Relied Upon Documents. The Court also noted that the impugned order indicated that personal hearing notices had been issued and some parties had appeared. Given that the Petitioner had not disclosed the receipt of the SCN and had concealed this fact from the Court, the Court was not inclined to entertain the writ petition. The Court observed that the case involved allegations of fraudulent Input Tax Credit (ITC) amounting to over 100 crores, involving multiple entities. Considering these circumstances and the fact that the impugned order was an appealable order, the Court directed the Petitioner to approach the appellate authority under Section 107 of the Central Goods and Service Tax Act, 2017. The Petitioner was permitted to file the appeal by 15th July, 2025, and the Appellate Authority was directed to consider all grounds and decide the appeal on merits.
Key Issues
1. Whether the Show Cause Notice (SCN) dated 24th May, 2022, was properly issued to the Petitioner, M/s AS Enterprises, and if its non-receipt or non-upload on the GST portal vitiates the subsequent proceedings? 2. Whether the Petitioner was afforded a proper opportunity for personal hearing before the impugned order dated 4th February, 2025, was passed? Petitioner's Contentions: The Petitioner argued that the SCN was not issued to them and was not uploaded on the GST portal, leading to a lack of knowledge about the proceedings. They also contended that no notice for personal hearing was issued. Revenue's Contentions: The Department, through its counsel, verified that the SCN was sent via email to Mr. Ashish Narula on 25th May, 2022, and 26th May, 2022, along with RUDs. The impugned order indicated that personal hearing notices were issued and some parties had appeared.
Sections Cited
Section 107
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 15.05.2025
This hearing has been done through hybrid mode.
The present petition has been filed by the Petitioner– M/s AS Enterprises through its Proprietor- Mr. Sharad Narula challenging the order dated 4th February, 2025 (hereinafter, ‘the impugned order’), passed by the Office of Principal Commissioner, Central Goods and Service Tax, North (hereinafter , ‘the Department’).
Mr. Rajesh Banati, appearing for the Petitioner, initially submitted that the show cause notice dated 24th May, 2022 (hereinafter , ‘the SCN’), out of which the impugned order arises, was not issued to the Petitioner at all.
However, the Court realised that there were four other petitions arising from the same SCN
The judgment continues below.
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