GST UPDATE

???? Desk of CA. Praveen Sharma – 756 Series (CAPS) ????

ALLAHABAD HIGH COURT IN THE CASE OF NTT Cloud Voice and Communications India Private Limited 

 ???? Short Summary of Court Proceedings (Stay Granted) – GST Adjudication Dispute

Case Summary:

Subject Matter: Challenge to adjudication order passed under GST laws

Key Points:

?Original SCN (Show Cause Notice):

Issued for IGST demand only of ?2.98 crore (plus interest & penalty).

?No CGST/SGST demand proposed.

?Subsequent SCN (Dated 18.12.2024):

?Issued after limitation period expired (30.11.2024).

?Introduced new CGST & SGST demands of ?19,777 each.

?Final Order (Dated 20.02.2025):

Surprisingly no IGST demand.

?Substantial CGST/SGST demand raised: ?2.76 crore each.

?Petitioner argued this is beyond jurisdiction, being contrary to original SCN and barred by limitation.

Court Observations:

?Prima facie matter requires consideration.

?Respondents granted 6 weeks to file counter; petitioner may file rejoinder within 2 weeks thereafter.

Interim Relief:

?Effect and operation of the order dated 20.02.2025 stayed till next hearing.

Takeaway:

???? Adjudication orders must stay within the scope of the original SCN and within limitation. Late issuance and expansion of scope render the order vulnerable.

LINK:https://www.linkedin.com/pulse/desk-ca-praveen-sharma-756-series-caps-allahabad-high-mfmvc

Regards

CAPS