Preliminary issues on distinct entity ownership and objection to invoking Section 74 must be decided before further adjudication

HC disposed the writ petition and directed that, pursuant to prior directions, the preliminary issues - whether the show cause notice (or part thereof) relates to a distinct entity owned by the petitioner's spouse with a separate registration, and the objection to invoking Section 74 of the CGST/SGST Acts - be examined and decided before adjudicating the remaining issues in the SCN. An order on these preliminary points must be passed prior to further proceedings.

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Petitioner challenged Ext.P1 show cause notice issued under Section 74 of the CGST/SGST Acts, contending there is "absolutely no cause of action" to invoke Section 74 and that part of Ext.P1 relates to a separate entity belonging to petitioner's husband with a distinct registration number. Respondent opposed collateral interference under Article 226, submitting all contentions are for the Adjudicating Authority. Having regard to directions in Ext.P3, the Court disposed the writ by directing that the contentions that the show cause notice "pertains to a separate entity belonging to the husband of the petitioner with separate registration number" and the objection against the invocation of Section 74 "will be considered as a preliminary issue" and that "an order shall be passed with regard to the same before proceeding to adjudicate the other issues in the show cause notice." The matter is remitted for the Adjudicating Authority to decide those preliminary issues prior to adjudicating remaining points in Ext.P1.

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