GST writ quashing set aside; show cause notice restored and timely statutory appeal protected from limitation.

A writ challenge to a GST show cause notice and consequential Order-in-Original under Section 74 was restored because the basis for quashing no longer survived, and the Single Judge's order was set aside. The assessee was also given liberty to pursue the statutory appellate remedy, with six weeks to file the appeal in view of pending writ proceedings. If filed within that period, the appellate authority was directed not to raise limitation and to decide the appeal on merits. The operative effect is restoration of the tax proceedings and protection of a timely statutory appeal from a limitation objection.

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Issues: (i) Whether the order quashing the show cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 and the consequential Order-in-Original required interference and restoration; (ii) Whether the respondent should be relegated to the statutory appeal remedy with protection against limitation.

Issue (i): Whether the order quashing the show cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 and the consequential Order-in-Original required interference and restoration.

Analysis: The challenge was governed by the same reasoning already applied in the connected appeals decided on the same date, under which the show cause notice and the Orders-in-Original had been restored. Since the impugned Order-in-Original had been passed pursuant to the notice under Section 74 of the Central Goods and Services Tax Act, 2017, the basis for quashing the proceedings did not survive.

Conclusion: The order of the Single Judge was set aside and the show cause notice as well as the Order-in-Original were restored.

Issue (ii): Whether the respondent should be relegated to the statutory appeal remedy with protection against limitation.

Analysis: The respondent was granted liberty to pursue the statutory appeal, and six weeks' time was allowed for filing the appeal in view of the pending writ proceedings. If the appeal was filed within that period, the appellate authority was directed not to entertain the plea of limitation and to decide the matter on merits.

Conclusion: The respondent was granted time to file the statutory appeal, and the plea of limitation was barred if the appeal was filed within the permitted period.

Final Conclusion: The writ appeal succeeded, the quashing order was overturned, and the dispute was restored to the statutory appellate forum for decision on merits.

Ratio Decidendi: Where an assessee is relegated to the statutory appellate remedy after pursuing writ proceedings in good faith, the court may restore the tax proceedings and direct that a timely appeal be heard on merits without raising limitation.

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