2025 (3) TMI 482 - HC - GST

Seeking to declare Rule 31A(3) of the Central Goods and Services Tax Rules 2017 and West Bengal Goods and Services Tax Rules 2017 along with Circular No.27/01/2018-GST dated January 4 2018 to be ultra vires Article 14 of the Constitution of India and Section 2 (52) Section 7 and Section 15 of the C.G.S.T. Act 2017 and W.B.G.S.T. Act 2017 - HELD THAT - The respondents submitted that after the show-cause notice was issued a Corrigendum dated 10th December 2024 was issued whereby the appropriate portions of the show-cause notice dated 24th July 2024 was amended and the showcause notice was made answerable to the Additional/Joint Commissioner of CGST CX Bengaluru East Central Tax Commissionerate Bengaluru and the appellants/writ petitioners had also participated in the adjudication process and the adjudicating authority has passed orders. This issue need not be adjudicated at this juncture and the same is kept open and left to be decided when the writ petition is taken up for hearing. Appeal disposed off giving liberty to the appellants/writ petitioners to file a separate application before the learned Single Bench and seeking for appropriate orders in the light of the order passed by the Hon ble Supreme Court dated 22nd January 2025 and if such application is filed the Hon ble Single Bench is at liberty to decide the matter on merits and in accordance with law.

Summary

The judgment by the Calcutta High Court involves an intra-Court appeal challenging an interim order dated 8th January, 2025. The appellants sought to declare certain rules and circulars as ultra vires the Constitution and challenged a show-cause notice issued under the Central Goods and Services Tax Act. The Court noted a similar case with a limited interim order and granted liberty to the appellants to seek modification based on a subsequent Supreme Court order granting stay on similar show-cause notices.**Issues Presented and Considered:**1. Validity of Rule 31A(3) of the Central Goods and Services Tax Rules, 2017 and West Bengal Goods and Services Tax Rules, 2017.2. Legality of the show-cause notice issued under Section 74 of the C.G.S.T. Act.3. Jurisdictional issue regarding the authority to adjudicate the show-cause notice.**Issue-Wise Detailed Analysis:**- The Court considered the legal framework of the rules and Acts in question, along with precedents such as a similar case with a limited interim order.- The Court interpreted the timing of the Supreme Court order and its implications on the appeal.- Key evidence included the show-cause notice, subsequent corrigendum, and arguments regarding jurisdiction.- The Court applied the law to the facts by granting liberty to the appellants to seek modification based on the Supreme Court order.- Competing arguments revolved around the timing of the Supreme Court order and its relevance to the appeal.- The Court concluded by disposing of the appeal, granting liberty to file a separate application before the Single Bench.**Significant Holdings:**- The Court refrained from adjudicating the merits of the case or the legal submissions based on the Supreme Court order, leaving it to the Single Bench to decide on merits and in accordance with the law.- The core principle established was the importance of aligning the interim order with subsequent developments in higher courts.The judgment highlights the procedural aspect of seeking modifications based on subsequent court orders and the importance of jurisdictional clarity in tax matters.