The Himachal Pradesh High Court quashed a Show Cause Notice issued under Rule 96(10) of the CGST Rules after its omission, holding that proceedings initiated under a non-existent rule are non-est in law.
HP HC Quashes GST SCN Issued Under Omitted Rule 96(10)
The Himachal Pradesh High Court quashed a Show Cause Notice (SCN) issued under Rule 96(10) of the Central Goods and Services Tax Rules, 2017, after the rule had been omitted with effect from 15 November 2023. The court held that any action taken under a rule that no longer exists in law is null and void, being non-est in law.
The petitioner challenged the SCN on the ground that the department relied on a rule that had ceased to exist at the time of issuance. The department argued that the omission did not affect pending proceedings, but the court rejected this, stating that a statutory rule cannot confer jurisdiction retroactively.
"A rule which has been omitted cannot be the foundation for initiating or continuing adjudicatory proceedings,"the court observed.
This ruling reinforces the principle of legality in administrative action. Taxpayers should scrutinize the legal basis of SCNs, particularly those relying on amended or omitted provisions. Legal practitioners must ensure that notices are grounded in current statutory frameworks to avoid being invalidated on technical grounds.
