2025 (1) TMI 727 - HC - GST

Challenge to notice dated 4.8.2024 issued by respondent no.2 - availment of ITC for effecting taxable as well as exempted supply wherein no separate record was allegedly maintained by the petitioner - mis-classification of product as an exempted goods - HELD THAT - A bare perusal of the show cause notices issued to the petitioner reveals that the subject matter of both the notices is totally different from each other and, therefore, apparently there is no bar in law in issuing two show cause notices for the same period with a different/distinct subject matter and, therefore, to that extent, no interference to the show cause notice is made out. So far as the plea pertaining to two show cause notices being adjudicated by two different authorities is concerned, the petitioner would be free to approach the said authorities and, in case, petitioner approaches the said authorities, the authority would take a view on the subject and examine viability of both the show cause notices being adjudicated by the same authority. Petition disposed off.

Summary

In the case before the Allahabad High Court, the petitioner challenged the issuance of two separate show cause notices by the respondents for the same period. The first notice, dated 30.07.2024, was issued by the Assistant Commissioner (AE), CGST, Meerut, concerning the petitioner's failure to maintain separate records for the availment of ITC related to taxable and exempted supplies. The second notice, dated 04.08.2024, pertained to the alleged misclassification of a product as exempted goods instead of taxable at a 5% rate.

The petitioner argued that issuing two notices for the same period was unjustified and warranted setting aside the second notice. However, the respondents contended that the notices addressed distinct and independent subject matters, and there is no legal prohibition against issuing multiple notices for different issues within the same period. The court agreed with the respondents, noting that the subject matters of the notices were "totally different" and thus permissible under the law.

Regarding the petitioner's concern about appearing before different authorities, the court stated that the petitioner could approach the authorities to request that both notices be adjudicated by the same authority. The petition was disposed of with these observations, allowing the petitioner to seek consolidation of the proceedings if deemed necessary by the authorities.