2022 (12) TMI 409 - HC - GST

GST Show Cause Notice Challenged: Petitioner Granted Opportunity to Present Jurisdictional Arguments Before Assessing Officer

HC dismissed writ petition challenging GST show cause notice, granting petitioner liberty to raise jurisdictional issues before Assessing Officer. Court ... Jurisdiction to initiate assessment proceedings under Section 74 of the U.P. GST/CGST Act, 2017 - show cause notice challenging assessment proceedings - power of Assessing Officer to proceed after appellate order under Section 107 - decide jurisdiction as a preliminary issue - reply and supplementary reply to show cause noticeShow cause notice challenging assessment proceedings - entertainment of writ petition - Writ petition challenging the show cause notice is not entertained and is disposed of without adjudicating the merits. - HELD THAT: - The Court declined to adjudicate the challenge to the show cause notice and observed that the issues raised by the petitioner remain open to be agitated before the Assessing Officer. The petition does not present such exceptional circumstances as to warrant interference at the writ stage; accordingly, the Court found no good ground to entertain the petition and disposed of it while directing the petitioner to pursue the available statutory remedy before the Assessing Officer.Writ petition dismissed for want of interference; petitioner to agitate issues before the Assessing Officer.Jurisdiction to initiate assessment proceedings under Section 74 of the U.P. GST/CGST Act, 2017 - power of Assessing Officer to proceed after appellate order under Section 107 - decide jurisdiction as a preliminary issue - reply and supplementary reply to show cause notice - The question of the Assessing Officer's jurisdiction to initiate proceedings under Section 74 in view of the appellate authority's order under Section 107 is to be decided by the Assessing Officer as a preliminary issue after affording opportunity to the petitioner. - HELD THAT: - The Court directed that all contentions raised by the petitioner, particularly the contention that the Assessing Officer lacks jurisdiction to proceed under Section 74 by reason of the earlier SIB survey and orders of the appellate authority, shall be raised in reply to the show cause notice and decided by the Assessing Officer. The petitioner was permitted to file any supplementary reply within two weeks; the Assessing Officer is obliged to consider the reply already filed on 5.8.2022 and any supplementary reply, deal with all contentions strictly in accordance with law, and decide the jurisdictional question as a preliminary issue before proceeding further with the assessment.Jurisdictional challenge remitted to the Assessing Officer for fresh consideration and decision as a preliminary issue after hearing the petitioner; petitioner may file a supplementary reply within two weeks.Final Conclusion: The writ petition is not entertained; the petitioner may supplement its reply to the show cause notice within two weeks and the Assessing Officer must decide all contentions, including the jurisdiction to initiate proceedings under Section 74 in view of the appellate order, as a preliminary issue and thereafter proceed strictly in accordance with law. Issues:1. Challenge to show cause notice dated 25.5.2021 under Section 74 of U.P. GST/CGST Act, 2017 for the financial year 2018-19.2. Jurisdiction of the Assessing Officer to proceed under Section 74 based on a survey/SIB survey dated 13.9.2019.3. Appeal against orders under Rule 86-A and Section 130 of the Act, 2017.4. Contention that all issues have been dealt with by the appellate authority.5. Proceedings under Section 74 deemed futile due to prior appellate authority decisions.6. Revenue contemplating challenging the order dated 19.7.2022 under Section 130 of the Act, 2017.7. Dismissal of the writ petition but allowing the petitioner to raise jurisdictional issues before the Assessing Officer in response to the show cause notice.8. Liberty granted to the petitioner to add to the reply to the show cause notice within two weeks for the Assessing Officer to consider all contentions, especially regarding jurisdiction.Analysis:1. The petition challenges a show cause notice issued under Section 74 of the U.P. GST/CGST Act, 2017 for the financial year 2018-19. The petitioner questions the jurisdiction of the Assessing Officer to proceed based on a survey dated 13.9.2019, highlighting that previous appeals against related orders have been allowed by the appellate authority. The petitioner argues that the issues leading to the demand and notice have already been addressed comprehensively by the appellate authority in its detailed orders.2. The petitioner contends that the initiation of proceedings under Section 74 is redundant as the appellate authority has already adjudicated on matters arising from the same survey. The petitioner asserts that the Assessing Officer cannot re-examine issues already decided by the appellate authority. The respondent-department indicates a potential challenge to the appellate authority's decision under Section 130 of the Act, 2017, before the court.3. The court notes that the issues raised by the petitioner are still open for discussion before the Assessing Officer. While dismissing the writ petition, the court allows the petitioner to raise all concerns, especially regarding the jurisdiction of the Assessing Officer, in response to the show cause notice. The petitioner is granted liberty to supplement the reply within two weeks to ensure all contentions are considered, emphasizing that the jurisdictional issue should be addressed as a preliminary matter during assessment proceedings under Section 74.4. The court directs the Assessing Officer to consider all arguments presented by the petitioner in the reply and any additional submissions within the specified timeframe. The court emphasizes that the Assessing Officer must handle the issues strictly in accordance with the law, particularly focusing on the jurisdictional aspect of initiating assessment proceedings under Section 74 of the Act.