Judicial Intervention Halts GST Adjudication Order, Temporarily Blocking Implementation of Notification No. 56/2023

HC issued an ad interim stay on a GST adjudication order challenging Notification No. 56/2023, restraining tax authorities from implementing the order dated 29.04.2024. The court granted respondents 4 weeks to file a response and allowed the petitioner to implead the central government authority. The matter was scheduled for further hearing on 26.06.2024.

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Issues involved:
The issues involved in the judgment are the contravention of Section 168A of the Central Goods and Services Tax Act, 2017, the setting aside of an order of adjudication under Section 73 of the Act, issuance of an injunction, and any other relief deemed fit in the circumstances.

Contravention of Section 168A:
The Petitioner Firm sought a declaration that Notification No. 56/2023 Central Tax dated 28.12.2023 issued by Respondent No. 4 is in contravention of Section 168A of the Central Goods and Services Tax Act, 2017 read with the Jharkhand Goods and Services Tax Act, 2017.

Setting aside of order of adjudication:
The Petitioner Firm requested a writ of Mandamus to quash the order of adjudication in FORM GST DRC 07 dated 29.04.2024 issued by Respondent No. 3 under Section 73 of the Central Goods and Services Tax Act, 2017 for the FY 2018-19, following a show cause notice in FORM GST DRC 01 dated 26.12.2023.

Issuance of injunction:
Additionally, the Petitioner Firm sought an order of injunction restraining the respondent authorities from giving effect to the order of adjudication in FORM GST DRC 07 dated 29.04.2024 until the disposal of the writ petition.

Other relief sought:
The Petitioner Firm also requested any other relief, order, or direction deemed appropriate in the circumstances of the case.

The learned counsel for the Petitioner Firm referred to Notification No. 09/2023--Central Tax dated 31st March 2023, which was stayed by several High Courts, to argue that Notification No. 56/2023--Central Tax dated 28th December 2023 was issued on similar lines. Furthermore, attention was drawn to an order dated 24th April 2024, indicating that the order passed on 29th April 2024 by the Deputy Commissioner of State Tax has become vulnerable.

The learned counsel for the respondent no. 3 requested 4 weeks' time to file a response to the writ petition. The matter was scheduled for further hearing on 26th June 2024, with an ad interim stay of the operation of the order dated 29th April 2024. The Petitioner Firm was granted liberty to implead the appropriate authority of the Central Government. Additionally, W.P.(T) No. 958 of 2024 was ordered to be tagged along with the instant writ petition.

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