GST SCN Issued Based on Unshared Verification Report: Madras HC Declines to Quash SCN, Orders Dept to Provide Report

The Madras High Court has declined to quash a GST show-cause notice (SCN) based on an unshared verification report, but crucially, it directed the department to provide the said report to the taxpayer. This decision strikes a balance between upholding taxpayer rights and maintaining the department's right to proceed with enforcement. The court acknowledged the department's prerogative to issue SCNs based on internal findings, but simultaneously underscored the taxpayer's right to access all relevant documents forming the basis of the demand to prepare an effective defense, ensuring transparency in assessment proceedings.