Validity of GST notification and missing statutory notice prompt interim stay against coercive recovery pending further hearing.

A writ petition challenged a summary show cause notice and consequential order on the ground that Notification No. 56/2023-CT, issued under Section 168A of the CGST Act, was allegedly contrary to that provision. The petitioner also contended that the statutory show cause notice under Section 73(1) had not been issued before the order was passed. As the validity of the notification was already under examination in other proceedings, notice was issued for further hearing and interim protection was granted, with coercive action under the impugned order stayed until the returnable date.

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Issues: Whether the challenge to the summary show cause notice and the consequential order raised a prima facie question regarding the validity of Notification No. 56/2023-CT issued under Section 168A of the Central Goods and Services Tax Act, 2017, and whether interim protection against coercive action was warranted pending further consideration.

Analysis: The writ petition questioned the issuance of the summary show cause notice for the relevant tax period on the ground that the notification relied upon for issuing it was alleged to have been issued contrary to Section 168A of the Central Goods and Services Tax Act, 2017. A further contention noticed was that the statutory show cause notice contemplated under Section 73(1) of the Central Goods and Services Tax Act, 2017 had not been issued before passing the consequential order. In view of the pending examination of the notification's legality in other proceedings and the contentions raised, the matter was directed to be noticed for further hearing, and interim protection was considered appropriate.

Outcome: Notice was issued and, in the interim, coercive action pursuant to the impugned order was stayed till the returnable date.

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