Section 74 of the CGST Act, 2017 — Show Cause Notice —–The petitioner challenged the impugned order passed under Section 74 of the Act and Form GST DRC-07 dated 31.03.2022. The court observed that first notice was given by the respondent no.2 on 15.03.2022 granting 15 days’ time to submit reply. The petitioner on 30.03.2022 submitted online adjournment application. The cause shown for taking adjournment was not disbelieved by the respondent no.2 and, yet, the adjournment application has been rejected and liability to tax has been assessed in the impugned orders. The impugned orders have been passed by the respondent no.2 in gross breach of principles of natural justice.

Held that:- The Hon’ble High Court quashed the impugned orders and remitted the matter back to the respondent no.2 to pass a fresh order in accordance with law, after giving reasonable time to the petitioner to submit his reply and after affording reasonable opportunity of hearing to the petitioner.