Territorial jurisdiction over GST show cause notices to proprietorship concerns remains valid despite an earlier notice to the proprietor individually.
A show cause notice under Section 74(1) of the CGST Act issued to a proprietorship concern was not shown to suffer from lack of territorial jurisdiction because the firm's place of business fell within the Rohtak Commissionerate. The earlier notice issued to the individual proprietor did not bar the subsequent notice to the firm or invalidate it at the threshold. The petitioner was left to raise objections and contest the proceedings before the authority in accordance with law, and no interference was warranted in writ jurisdiction.
Issues: Whether the show cause notice issued under Section 74(1) of the Central Goods and Services Tax Act, 2017 to the proprietorship concern was jurisdiction and liable to be interfered with at the threshold, and whether the earlier notice issued to the individual proprietor barred the subsequent notice to the firm.
Analysis: The Court held that the petitioner's earlier challenge to a separate notice did not prevent the authorities from proceeding against the proprietorship concern. It found that the firm was situated at Jind, within the jurisdiction of the Rohtak Commissionerate, and therefore the notice could not be said to have been issued without territorial competence. The earlier notice to the individual was held to have no effect on the validity of the notice issued to the firm. The petitioner was left free to file a reply and contest the proceedings in accordance with law.
Conclusion: The challenge to the show cause notice failed, and no interference was warranted at the threshold.
Final Conclusion: The writ petition was rejected, leaving the petitioner to pursue objections before the authority on merits.
Ratio Decidendi: A show cause notice issued to a proprietorship concern by the authority having territorial jurisdiction over the firm's place of business is not vitiated merely because an earlier notice was issued to the proprietor individually.
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