Section 73 of the CGST Act, 2017 – Show Cause Notice —- The petitioner prayed for quashing the impugned Observations dated 21.02.2022 issued u/s 65(6) of the Act and to declare respondent has no authority of law under Section 50 to levy interest at the rate of 24% on the wrong posting of excess transitional ITC. The petitioner submitted that an intimation of audit observation dated 21.02.2022 was issued, which was challenged by the petitioner. Since there was no interim order passed by this Court, respondent No.4 has proceeded to prepare an audit report to which a SCN dated 26.08.2022 has been issued. The Court observed that perusal of SCN dated 26.08.2022 indicate that the petitioner has been merely called upon to show cause as to why the amounts, penalty, interest etc., as detailed in the audit report should not be levied upon him.

Held that:- The Hon’ble High Court granted liberty to the petitioner to submit his reply/response to the SCN, along with all relevant documents within a period of one month. The concerned respondents shall provide an opportunity of personal hearing to the petitioner and proceed further to pass appropriate speaking orders in accordance with law.