2025 (5) TMI 989 - HC - GST

Tax Show Cause Notice Under GST Act Requires Separate Legal Challenge with Distinct Procedural Pathways for Notice and Adjudication Order

HC addressed a writ petition challenging a tax-related show cause notice under GST Act. During proceedings, an adjudication order was passed. HC ruled ... Challenge to SCN issued in Form GST DRC 1 dated 2nd August, 2024 under Section 74 of the Central/West Bengal Goods and Services Tax Act, 2017 - HELD THAT:- Since, the show cause has already been adjudicated and has culminated in the order in original, the order in original cannot be challenged by way of a connected application as the same gives rise to a separate cause of action. The instant writ petition can be disposed of by permitting the petitioners to challenge not only the show cause but also the adjudication order in original dated 31st January, 2025 in a composite manner in accordance with law, before the appropriate forum,if so advised - Petition disposed off. The Calcutta High Court addressed a writ petition challenging a show cause notice issued under Section 74 of the Central/West Bengal Goods and Services Tax Act, 2017. During the pendency of the petition, an order in original dated 31st January 2025 was passed for the tax period July 2017 to March 2020. The Court held that the adjudication order, being a separate cause of action, 'cannot be challenged by way of a connected application.' Consequently, the Court permitted the petitioners to challenge both the show cause notice and the adjudication order 'in a composite manner in accordance with law, before the appropriate forum.' The writ petition and connected application were disposed of accordingly. No affidavit-in-opposition was filed, so the allegations in the petition remain unadmitted.