Jurisdiction to issue GST notices questioned; participation required, but enforcement of the decision remains stayed pending writ proceedings

A jurisdictional challenge was raised to a GST show-cause notice for October 2022 to March 2023, on the ground that the notification governing Bureau of Investigation officers conferred investigative powers but not authority to issue notices for short payment or non-payment of tax. The material records a prima facie case warranting hearing of the writ petition. The petitioner was nevertheless directed to respond to the notice and participate in the proceedings. Any decision on the notice may be made, but cannot be enforced against the petitioner until disposal of the writ petition or further order, preserving the subject matter of the challenge.

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Issues: Whether the notice-issuing authority had jurisdiction to issue the show-cause notice under the relevant GST framework, and whether the petitioner should be required to participate in the proceedings while the writ petition remains pending.

Analysis: A jurisdictional objection was raised against the show-cause notice issued for the tax period October 2022 to March 2023, contending that the notification governing the Bureau of Investigation officers conferred investigative powers but not authority to issue a notice for short payment or non-payment of tax. The Court found a prima facie case warranting hearing of the writ petition, while also noting that the petitioner should respond to the show-cause notice and take part in the proceedings. To preserve the subject matter of the petition, the Court directed that the respondent may decide the show-cause notice, but such decision would remain unenforced against the petitioner until disposal of the writ petition or further order.

Outcome: The writ petition was disposed of with a direction to participate in the proceedings and with interim protection against enforcement of any decision on the show-cause notice.

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