2023 (11) TMI 1018 - HC - GST

Service of SCN demanding GST on some allegedly taxable services - petitioner submits that the GST which has been demanded in the show cause notice for the services which are not taxable under the GST regime - HELD THAT - Since the petitioner has approached this Court only against the show cause notice, this Court is not inclined to interfere this writ petition when the petitioner has opportunity to raise objections on all possible grounds against the demand of GST in the show cause notice before the authority concerned. In view thereof, the petitioner is provided ten days opportunity to file a reply in response to the show cause notice and participate in the adjudication proceedings. Since one of the High Courts has reserved the judgment as per learned counsel for the petitioner, it would be appropriate and in the interest of justice that the adjudicating authority shall not pass final order for a period of one month. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are the demand of GST on allegedly taxable services by a private scheduled bank and the legality of the show cause notice served to the petitioner.

Details of the Judgment:

1. The petitioner, a private scheduled bank, received a show cause notice demanding GST on certain services. The petitioner contends that the demanded GST is for services not taxable under the GST regime, making the demand illegal and against the provisions of the Central Goods and Service Tax Act/Kerala Goods and Service Tax Act, 2017 and Rules made thereunder.

2. The petitioner's counsel highlights that similar writ petitions challenging show cause notices have been filed in various High Courts across the country. The Karnataka High Court has reserved judgment on a similar show cause notice, and the Delhi High Court is also seized of the matter.

3. The Court notes that since the petitioner can raise objections against the GST demand before the authority concerned, it is not inclined to interfere with the writ petition solely against the show cause notice. The petitioner is granted ten days to respond to the notice and participate in adjudication proceedings. The adjudicating authority is directed not to pass a final order for one month, considering the pending judgment in another High Court. The petitioner is instructed to appear for an oral hearing on a specified date after filing the response.

4. In conclusion, the writ petition is disposed of with the directions provided for the petitioner to respond to the show cause notice and participate in the adjudication process.