9911796707
TMI Blog2025 (2) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... shall issue the order under sub-Section (9) of Section 74 within a period of five years from the due date of submission of the annual return. The power of the High Court under Article 226 of the Constitution of India cannot be invoked by the assessee, who is faced with a notice under Section 74 seeking a part adjudication of the lis, which is pending before the proper officer. Of course, in a given situation, when it is alleged that there is a total lack of jurisdiction in issuance of the show cause notice, the High Court may exercise its discretion in entertaining the writ petition. But, as a general rule, the writ petition against the issuance of a show cause notice under Section 74 of the CGST Act/SGST Act cannot be entertained. In D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dv Akhil Suresh. JUDGMENT EASWARAN S., J. This intra-court appeal is preferred by the State aggrieved by the judgment dated 22.11.2024 of the learned Single Judge in WP(C) No.40226/2024. 2. The brief facts for the disposal of the appeal are as follows: The 1st respondent herein (assessee), approached the writ court by filing the writ petition challenging Ext.P1 show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017/State Goods and Services Tax Act, 2017. The assessee is engaged in the business of sale of gold, silver and diamond ornaments. On 25.5.2023, the appellant conducted a search in the premises of the writ petitioner and collected certain data from the software "Gold Mine", which was used by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the respondent/writ petitioner. 5. The question to be considered by us is whether the direction of the learned Single Judge can be sustained in the light of the statutory scheme envisaged under CGST Act/SGST 2017. Section 74 (1) of the CGST Act/SGST Act authorises the proper officer to issue a notice to show cause. Sub-Section (2) of Section 74 envisages that such notice shall be issued six months prior to the time limit specified under sub-Section (10) of Section 74. The power of adjudication conferred on the proper officer is under sub-Section (9) of Section 74, which reads as under: "74. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permits issuance of a notice within six months from the time prescribed for completion of adjudication under sub-Section (9) of Section 74, then, entertaining the request of the assessee for part adjudication will be detriment to the interest of the Revenue as well as to the assessee. Accepting the said request would also lead to a situation where the mandatory period required for completion of the proceedings under Section 74 cannot be adhered to, resulting in an irreversible damage to the Revenue. 9. We must also say that, the power of the High Court under Article 226 of the Constitution of India cannot be invoked by the assessee, who is faced with a notice under Section 74 seeking a part adjudication of the lis, which is pending before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute to decide issues in stages or on a preliminary basis. 11. We have been informed that going by the time limit prescribed under sub-Section (10) of Section 74 of the CGST Act/SGST Act, the adjudication has to be completed by 8.2.2025. However, in view of the interim order passed in the writ petition staying further proceedings under Section 74, which was in operation for a period of seven days, the Revenue will get the benefit of the stay and the period of adjudication will expire only on 15.2.2025. We are also informed that the assessee has already been put on notice to appear before the adjudicating authority/proper officer on 10.2.2025. We, therefore, direct the 1st respondent/assessee to appear before the adjudicating officer on 10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
