2024 (12) TMI 516 - HC - GST

Deputy Director has authority to issue GST show cause notices under Section 6(1) despite petitioner's jurisdictional challenge

M/s Baba Minerals Versus Union Of India, The Additional Director, Directorate General Of Goods And Service Tax Intelligence, Jaipur Zonal Unit, The Additional Commissioner/ Joint Commisioner, Of Central Excise And Goods And Services Tax Commissionerate, New Central Revenue Building, Statute Circle, C-Scheme, Jaipur-, State Of Rajasthan

The HC dismissed a petition challenging a show cause notice issued by Deputy Director of DGGSTI under GST Act, 2017. Petitioner argued Deputy Director ... Seeking quashing of SCN - petitioner submits that the allocation of the petitioner is of the State jurisdiction - Proper Adjudicating Authority - generation of fake Input Tax Credits (ITC) by doing cash transactions and relying upon the fake invoices issued - HELD THAT:- The challenge in the present petition is only to the show cause notice. The allegations against the petitioner in the show cause notice are based upon the facts and needs factual determination - The petitioner has filed this petition even without filing the reply to the show cause notice. For determining the contention that DGGSTI cannot be adjudicating authority the writ is premature and is dismissed accordingly. The petition seeks to quash a show cause notice dated 31.07.2024 issued to a registered dealer under the Goods and Services Tax Act, 2017 by the Deputy Director of DGGSTI. The petitioner argues that the Deputy Director cannot be an Adjudicating Authority, citing Section 6(1) of the Act. The respondent contends that the notice is valid based on intelligence input and circular provisions. The court dismisses the petition as premature since the challenge is only to the show cause notice, which requires factual determination.