Supplementary GST show cause notice permitted, with coercive recovery stayed until adjudication of the notice is completed.

Supplementary show cause notice proceedings under GST were permitted to continue, with the respondents allowed to issue the notice within six weeks and complete adjudication after giving the petitioner time to reply and participate. The court also declined to stop the demand proceedings under FORM GST DRC-01, but restrained coercive recovery measures until the supplementary show cause notice was adjudicated. The matter was disposed of on that basis, preserving the statutory adjudicatory process while granting interim protection against coercive action.

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Issues: (i) whether the respondents should be permitted to issue a supplementary show cause notice and proceed with adjudication in accordance with the earlier order; (ii) whether coercive steps in relation to the demand notices should be restrained till adjudication of the supplementary show cause notice.

Issue (i): Whether the respondents should be permitted to issue a supplementary show cause notice and proceed with adjudication in accordance with the earlier order.

Analysis: The petition was placed in the backdrop of an earlier order requiring a supplementary show cause notice to be served. The respondents stated that such notice would be issued within six weeks, and that the petitioner would be given time to file a reply and participate in the adjudicatory process. The Court accepted this course and permitted the respondents to proceed in that manner.

Conclusion: The respondents were permitted to issue the supplementary show cause notice and continue with adjudication in terms of the stated timeline.

Issue (ii): Whether coercive steps in relation to the demand notices should be restrained till adjudication of the supplementary show cause notice.

Analysis: The petition also assailed the demand notices issued under FORM GST DRC-01. While the Court did not interfere with the continuation of those proceedings, it considered it appropriate to protect the petitioner against coercive action until the supplementary show cause notice was adjudicated.

Conclusion: Coercive steps were restrained till adjudication of the supplementary show cause notice, while the demand proceedings were permitted to continue.

Final Conclusion: The petition was disposed of by permitting the statutory adjudicatory process to continue, while granting interim protection against coercive recovery until completion of that process.

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