Jurisdictional challenge to GST show cause notice succeeds prima facie, with further proceedings stayed pending hearing

A show cause notice was challenged as lacking jurisdiction after the Central Goods and Services Tax Act, 2017 and the omission of Entry 92C from List I of the Seventh Schedule. On a prima facie review of the pleadings, the HC found the notice to be without jurisdiction and granted interim protection by staying further proceedings under the notice until the returnable date.

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Issues: Whether the show cause notice was prima facie without jurisdiction after the enactment of the Central Goods and Services Tax Act, 2017 and the omission of Entry 92C from List I of the Seventh Schedule to the Constitution of India, and whether further proceedings under the notice should be stayed.

Analysis: The writ petition challenged the show cause notice on the ground that the authority issuing it lacked jurisdiction in view of the statutory and constitutional changes brought about by the Central Goods and Services Tax Act, 2017 and the deletion of Entry 92C from List I of the Seventh Schedule. On a prima facie consideration of the pleadings, the Court found the impugned notice to be without jurisdiction and considered interim protection necessary pending further hearing.

Conclusion: The notice was found prima facie to be without jurisdiction, and further proceedings pursuant to the impugned notice were stayed until the returnable date.

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