GST Update

 Desk of CA. Praveen Sharma – 1024 Series (CAPS) 

CALCUTTA HIGH COURT    IN THE CASE OF  S. S. Iron & Steel 

The petitioner challenged the legality and validity of the adjudication order passed under the GST law on the ground that a consolidated show cause notice was issued covering multiple financial years from 2019-20 to 2023-24.

The petitioner contended that clubbing multiple financial years in a single show cause notice is contrary to the statutory scheme and limitation provisions applicable separately for each financial year. It was argued that proceedings for each year must be initiated and completed independently within the prescribed limitation period.

The petitioner further submitted that the adjudication order suffered from jurisdictional defects and relied upon judicial precedents dealing with limitation and consolidated proceedings.

On the other hand, the department raised a preliminary objection regarding maintainability of the writ petition on the ground that an effective alternative appellate remedy was available under the GST law.

The Court observed that writ jurisdiction is generally not exercised where a statutory appeal remedy exists, except in exceptional cases involving violation of natural justice, lack of jurisdiction or challenge to constitutional validity.

The Court noted that the petitioner had not challenged the show cause notice at the initial stage and approached the Court only after passing of the adjudication order. The issues relating to limitation, jurisdiction and validity of consolidated proceedings could be effectively raised before the appellate authority.

The Court further observed that similar legal issues are already pending consideration before a Larger Bench in another matter and therefore refrained from expressing any opinion on merits.

Accordingly, the writ petition was dismissed on the ground of availability of alternative statutory remedy. However, liberty was granted to the petitioner to file an appeal before the appellate authority within the prescribed period and all questions of law were kept open for adjudication.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS