2025 (2) TMI 1153 - HC - GST

Quash denied; show-cause notice stands; advance-ruling overlap and tax rate to be decided in adjudication; reply four weeks; adjudicate twelve weeks

The HC declined to quash the impugned show cause notice, holding that interference at the notice stage was unwarranted; issues whether the notice revisits ... Seeking to quash and set aside the impugned SCN - case of the Petitioner is that by the impugned show cause notice, the authorities are seeking to go beyond the Advance Ruling already given in favour of the Petitioner by the Appellate Authority - HELD THAT:- This is certainly not a fit case where it is required to interfere at the show cause notice stage. Whether the show cause notice, in fact, seeks to do something which is also ruled upon in the Advance Ruling order, or otherwise, is something that the authorities will have to decide whilst adjudicating the show cause notice. Further, what tax has to be paid by the Petitioner and at what rate, will also have to be decided whilst adjudicating the show cause notice. At this stage, it is not inclined to interfere with the issuance of show cause notice and the Petitioner will have to face the same. The Petitioner shall file its Reply/ Representation to the show cause notice within a period of four weeks from today and the show cause notice shall be adjudicated within a period of twelve weeks from today. The Bombay High Court heard a Writ Petition seeking to quash a show cause notice dated 6th August, 2024. The Petitioner argued that the notice went beyond an Advance Ruling in their favor. The Respondents contended that a 5% discount given by the Petitioner constituted a taxable service. The Court declined to interfere at the show cause notice stage, stating that the authorities must decide the matter during adjudication. The Petitioner was directed to file a Reply/Representation within four weeks, with the show cause notice to be adjudicated within twelve weeks.