2024 (10) TMI 1022 - HC - GST

Challenge to demand-cum- show cause notice - non-payment of GST under Reverse Charge Mechanism - lack of jurisdiction - applicability of Section 15(2) of the CGST Act, 2017 - HELD THAT - The challenge is to the demand-cum-show cause notice issued by the competent authority. The appropriate course of action for the petitioners is to submit a reply and contest the matter before the said authority. The demand- cum show cause notice dated 24.04.2024 having been issued by the competent authority cannot be challenged on the plea of lack of jurisdiction. As regards, the applicability of Section 15(2) of the CGST Act, 2017, all issues raised by the petitioners herein are left open to be adjudicated before the competent authority. Petition dismissed.

Summary

The High Court dismissed the petition challenging a demand-cum-show cause notice for CGST liability of Rs. 2,38,60,366 under Reverse Charge Mechanism. The petitioners argued that taxes paid under the Motor Vehicles Act should not be considered under "value of supply." The Court held that the challenge should be contested before the competent authority, and the petition was dismissed.