2020 (10) TMI 105 - HC - GST

Validity of SCN - Appealable order or not - Annexure- AG and Annexure- AH to the writ petition - period from July-2017 to April-2018 - HELD THAT - Insofar as Annexure- AG dated 06.03.2020 is concerned, the petitioner to file appeal as provided under Section 112 of the CGST Act. The clarification circular produced along with memo dated 10.09.2020 provides for filing of appeal within three months from the date of constitution of the Tribunal or the date on which the President enters office. As on this date, the Tribunal has not been constituted. Thus, the petitioner is directed to file an appeal against the impugned order bearing No.GST A.No.19-24/2019-20 A-II ADC No.39-44/ADC/AII/GST/2020 dated 06.03.2020, Annexure- AG within three months from the date of constitution of the Tribunal or within three months from the date of President enters office. Annexure- AH dated 04.06.2020 is a show cause notice. The petitioner to reply to the said show cause notice bringing to their notice discrepancy therein as noted above. The said reply shall be filed within two weeks. Thereafter, the Adjudicating Authority shall consider the objection filed if any, adjudicate the issue in question and pass orders in accordance with law. No precipitative action shall be taken by the respondents in pursuance to Annexure- AH dated 04.06.2020 till Adjudicating Authority passes an order. Petition disposed off.

Summary

Issues: Petition for writ of certiorari to quash an order passed by the Commissioner of Central Tax and a show cause notice issued, filing of appeal under the CGST Act, inclusion of demand in the show cause notice, directions regarding filing of appeal and replying to the show cause notice.

In this judgment, the petitioner approached the High Court under Article 226 seeking to quash an order dated 16.03.2020 passed by the Commissioner of Central Tax and a show cause notice dated 04.06.2020. The learned counsels for both parties were heard through video conference. The respondent's counsel pointed out that the order in question is appealable under the CGST Act and that the show cause notice is a procedural step before adjudication. On the other hand, the petitioner argued that the demand from a previous period was included in the show cause notice without proper direction. After considering the arguments and the material on record, the Court directed the petitioner to file an appeal against the impugned order within three months from the constitution of the Tribunal or the President entering office. Additionally, the Court instructed the petitioner to respond to the show cause notice within two weeks, highlighting any discrepancies. The Adjudicating Authority was directed to consider the objections, adjudicate the issue, and pass orders in accordance with the law. The Court ordered that no precipitative action should be taken by the respondents until the Adjudicating Authority issues a decision. Finally, the writ petition was disposed of with the above observations.