2025 (3) TMI 324 - HC - GST

Challenge to SCN issued by the Commissioner Central Goods and Services Tax - HELD THAT - From a plain reading of the show-cause notice it is found that the Commissioner concerned has given elaborate reasons for invoking provisions of the IGST Act 2017 CGST Act 2017 and J K GST Act 2017 to initiate an action against the petitioner-Bank. The petitioner-Bank is well within its right to reply to the show cause notice and while replying the show-cause notice the petitioner-Bank is also free to take the objection with regard to the jurisdiction of the Commissioner to issue a show-cause notice. The bank shall further be entitled to plead and demonstrate before the Commissioner that the transaction in question is neither covered under the CGST Act 2017 J K GST Act 2017 or the IGST Act 2017. It is not inclined to entertain this petition - petition dismissed.

Summary

The High Court of Jammu & Kashmir and Ladakh considered a petition filed by a bank challenging a show-cause notice issued by the Commissioner Central Goods and Services Tax. The notice invoked provisions of various GST Acts and called for the bank to explain why action should not be taken against it. The court emphasized the bank's right to respond to the notice, challenge the jurisdiction of the Commissioner, and demonstrate that the transaction in question may not fall under the relevant Acts. The court declined to entertain the petition but granted two weeks for the bank to reply to the notice. The Commissioner was directed to consider the reply and make a decision within four weeks, ensuring all petitioner contentions are addressed. No coercive action was permitted against the bank until a decision is reached.