2024 (2) TMI 1065 - HC - GST

Jurisdiction to issue SCN - issuance of multiple show-cause notices based on one single audit report - Section 65 (7) of the Central Goods and Services Tax Act, 2017 - HELD THAT - Matter requires consideration - Issue notice. Issue notice of the stay application also - List the matter on 30.01.2024.

Summary

Issues involved: Jurisdiction of Additional Commissioner u/s 65(7) of CGST Act, 2017

The judgment pertains to a case where the Additional Commissioner, CGST, Jaipur passed an order regarding jurisdiction, concluding that he has the authority to issue a show-cause notice. A miscellaneous application was filed by the respondents to place this order on record, which was allowed. The petitioner's counsel argued that the determination made by the authority on jurisdiction is contrary to Section 65(7) of the Central Goods and Services Tax Act, 2017, as it may lead to the issuance of multiple show-cause notices based on one audit report. The counsel referred to the definition of 'Proper Officer' under Section 2(91) of the Act and a notification, stating that only one notice based on the audit report's monetary limit could be issued. Since a notice had already been issued by the Superintendent, the Additional Commissioner could not issue another notice.

The respondents' counsel requested time to file a reply and defended the authority's jurisdiction determination, arguing that Section 65(7) is not limited to issuing a single notice. They contended that a separate show-cause notice can be issued based on each paragraph of the audit report by the Jurisdictional Officer. The court found the matter needing consideration and issued notices, scheduling the next hearing. Meanwhile, proceedings related to the show-cause notice before the Additional Commissioner were stayed until further orders. The respondents were allowed to seek vacation of the interim order after filing their reply to the petition.