Judicial Intervention Suspends Tax Notice Proceedings Under Section 61 of CGST Act Pending Comprehensive Legal Review

HC of Calcutta stayed a notice under Section 61 of CGST Act issued by CGST & Central Excise Superintendent. The court halted proceedings pending writ petition resolution, directing respondents to file affidavit-in-opposition. The appeal challenged jurisdictional validity of the notice, with the court reserving final determination for full hearing of the underlying legal issues.

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Issues involved:
The issue involves the legality of a notice issued under Section 61 of the CGST Act, 2017 by the Superintendent, CGST & Central Excise, L-1, Circle-III, Durgapur, and the jurisdiction of the DGGI to call for appearance and documents.

Summary:
In this intra court appeal, the High Court of Calcutta considered the order dated 3rd July, 2023, in which the learned Single Bench declined to grant any interim order. The appeal was filed against this decision. The main question revolved around whether the respondent authority could proceed based on the notice dated 17.04.2023 issued under Section 61 of the CGST Act, 2017. The appellants argued that the Audit Department had already closed the case for the same period after being satisfied with the documents submitted. They also highlighted that the DGGI had issued summons for the same period, and the matter was pending before them. The appellants contended that the notice dated 17.04.2023 was without jurisdiction as the Audit Department had already approved and settled the matter. On the other hand, the respondents stated that directions from the Analytical Wing of the Department necessitated the issuance of the notice. The court, considering the jurisdictional issue, stayed the notice dated 17.04.2023 until the disposal of the writ petition.

Moreover, the court noted that a legal issue to be considered was whether a fresh notice should be issued by the Range Officer after the scrutiny of returns by the Audit Department. The court allowed the appeal and directed that the notice issued by the Superintendent, CGST & Central Excise, L-1, Circle-III, Durgapur, dated 17.04.2023 would remain stayed until the disposal of the writ petition. The respondent was instructed to file an affidavit-in-opposition in the writ petition, after which the petition would be heard and decided on its merits and in accordance with the law. The court also acknowledged the submission made by the senior standing counsel for the respondent department regarding the investigation proceeding in parallel, citing a relevant decision for consideration during the hearing of the writ petition.

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