The Punjab and Haryana High Court ruled that a GST penalty order issued without a show cause notice is invalid, reaffirming principles of natural justice.
Delhi HC Rules No SCN, No Valid GST Penalty
The Punjab and Haryana High Court has reaffirmed the principles of natural justice by ruling that a GST penalty imposed without issuing a show cause notice is invalid. The court highlighted that such an omission violates Section 75(4) of the CGST Act.
In its judgment, the court quashed the GST penalty, allowing the authorities the liberty to initiate fresh proceedings in accordance with the law. This decision underscores the necessity of procedural fairness in tax administration.
This ruling serves as a critical reminder for legal practitioners that due process must be followed in tax-related proceedings. Taxpayers should be properly notified and given the opportunity to respond to allegations before penalties are imposed.
Citations
- Punjab and Haryana HC (2026) Unreported Judgment
