2025 (3) TMI 363 - HC - GST

Invocation of provisions of Section 74 of the Central Goods and Services Tax/State Goods and Services Tax Acts 2017 - HELD THAT - Having regard to the directions issued by this Court in Ext.P3 judgment dated 12-09-2024 in WP(C)No.31434 of 2024 2024 (9) TMI 1694 - KERALA HIGH COURT this writ petition will also stand disposed of directing that the reply filed by the petitioner as Ext.P2 and in respect of which Ext.P5 acknowledgement has been issued shall be considered by the adjudicating authority before final orders are passed on the show cause notice. Further the adjudicating authority shall also consider any objection raised by the petitioner regarding the question as to whether there were any grounds to issue notice under Section 74 of the CGST/SGST Acts. The adjudicating authority shall consider such objection (if raised) as a preliminary issue and orders shall be passed on the same before proceeding further with the adjudication of the show cause notice. The petitioner shall be afforded an opportunity of hearing before any orders are passed. Petition disposed off.

Summary

The petitioner sought to quash Exhibit P1 Show Cause Notice and challenge the invocation of Section 74 of the Central Goods and Services Tax/State Goods and Services Tax Acts. The Court directed that the petitioner's reply and objections be considered by the adjudicating authority before final orders are issued, following a similar precedent from a previous judgment. The adjudicating authority was instructed to treat the objection regarding Section 74 as a preliminary issue and decide on it before further adjudication, with the petitioner given an opportunity for a hearing. The writ petition was disposed of accordingly.