2019 (12) TMI 415 - HC - GST

Validity of SCN - demand of Interest on delayed payment of GST - SCN issued in Form GST DRC 01 under Rule 142(1) of the CGST Rules, 2017 - impugned SCN is issued in relation to section 50 of the Central Goods and Service Tax Act, 2017 - Reference was made to rule 142 of the Rules to point out that the same no where contemplates issuance of notice thereunder in respect of section 50 of the Act - HELD THAT - Issue Notice, returnable on 26.12.2019. By way of ad-interim relief, further proceedings pursuant to the impugned notice dated 19.07.2019 are hereby stayed.

Summary

Issues:
Challenge to impugned show cause notice under Rule 142(1) of the Central Goods and Service Tax Rules, 2017 regarding section 50 of the Central Goods and Service Tax Act, 2017.

Analysis:

1. Impugned Show Cause Notice:
- The petitioner challenged the show cause notice dated 19.07.2019 issued under Rule 142(1) of the Central Goods and Service Tax Rules, 2017, related to section 50 of the Central Goods and Service Tax Act, 2017.
- The advocate pointed out that Rule 142 of the Rules does not authorize the issuance of a notice under section 50 of the Act. Hence, it was argued that the notice lacked legal authority.

2. Court's Decision:
- The Court, after considering the submissions made by the petitioner's advocate, issued a notice returnable on 26.12.2019.
- Additionally, the Court granted ad-interim relief by staying further proceedings based on the impugned notice dated 19.07.2019.
- Direct service of the order was permitted for compliance.

This judgment highlights the importance of adherence to legal provisions and rules while issuing show cause notices under specific sections of the GST Act. The Court's decision to issue a notice and stay further proceedings indicates a cautious approach to ensure legal compliance and fairness in the proceedings. The petitioner's challenge to the notice underscores the significance of procedural correctness in legal actions related to tax matters.