Preliminary objections to GST show cause notice must be decided first before substantive adjudication proceeds.

The writ petition against a CGST/SGST show cause notice was not quashed, but the High Court directed the adjudicating authority to decide the petitioner's threshold objections first. Those objections included the contention that part of the notice related to a separate entity with a distinct registration and the challenge to invocation of section 74. Only after passing an order on those preliminary issues may the authority proceed with adjudication on the remaining matters in the notice.

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Issues: Whether the challenge to the show cause notice issued under section 74 of the CGST/SGST regime required the Adjudicating Authority to first decide, as a preliminary issue, the contention that part of the notice related to a separate entity and the objection to invocation of section 74.

Analysis: The writ petition was disposed of by directing that the objections raised by the petitioner, including the plea that the notice in part pertained to a separate entity with a distinct registration and the challenge to invocation of section 74, be examined first. The authority was directed to pass an order on those objections before proceeding with adjudication on the remaining issues in the notice.

Conclusion: The preliminary objections were required to be decided first by the adjudicating authority before further adjudication on the show cause notice.

Final Conclusion: The petitioner obtained a limited procedural protection requiring prior consideration of the core objections, while the merits of the notice were left for adjudication in accordance with law.

Ratio Decidendi: Where a writ court declines to quash a tax show cause notice but directs threshold objections to be decided first, the adjudicating authority must dispose of those preliminary objections before continuing with the substantive adjudication.

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