Discretionary pre-consultation under GST show cause procedure challenged, with interim protection against giving effect to any final order

The Delhi HC has entertained a challenge to the constitutional validity of the amendment under Rule 142(1A) of the CGST Rules that makes pre-consultation before a show cause notice discretionary. It has also directed the petitioner to participate in the pending show cause proceedings, while restraining effect to any final order that may be passed unless the Court orders otherwise.

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Issues: (i) Challenge to the constitutional validity of the amendment making pre-consultation before issuance of a show cause notice discretionary under Rule 142(1A) of the Central Goods and Services Tax Rules, 2017; (ii) interim direction regarding continuation of proceedings arising from the show cause notice and non-giving effect to any final order without further orders of the Court.

Outcome: Notice issued. The petition remains pending. The petitioner is directed to participate in the show cause proceedings, and any final order that may be passed is not to be given effect to without further orders of the Court.

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