GST show cause notice under section 74: writ court declined interference and left objections for adjudication.

Interference was not warranted at the stage of a GST show cause notice issued under section 74 where the petitioner had an effective opportunity to raise factual and legal objections before the adjudicating authority. The challenge to the notice, including objections to the audit report and to the basis for proceeding under section 74, was left open for consideration in the adjudication process. The adjudicating authority was required to consider those objections and afford a hearing before passing final orders. The writ petition was therefore disposed of with liberty to raise all contentions before the authority, and time to file the reply was extended.

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Issues: Whether interference was warranted at the stage of a show cause notice issued under section 74 of the GST laws, and whether the petitioner should be permitted to raise objections before the adjudicating authority.

Analysis: The petition challenged a show cause notice founded on an audit report. The Court found that the objections to the audit report, the contention that there was no basis to proceed under section 74, and all other factual and legal objections could appropriately be raised before the adjudicating authority. It was also directed that the adjudicating authority must consider such objections before passing final orders and afford the petitioner an opportunity of hearing.

Outcome: The writ petition was disposed of with liberty to raise all contentions before the adjudicating authority, and the time to file a reply to the show cause notice was extended.

Ratio Decidendi: A writ court will ordinarily not interfere at the stage of a GST show cause notice where the petitioner has an efficacious opportunity to raise all objections before the adjudicating authority, which must consider them before final adjudication.

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