Order CGST dept. has authority of law to issue SCN on same issue on which SGST dept. already initiated & dropped proceedings

Financial Year: 2023

CGST dept. has authority of law to issue SCN on same issue on which SGST dept. already initiated & dropped proceedings

South Eastern Coalfields Ltd. v. Principal Commissioner, CGST (Chhattisgarh)

The petitioner was a Public Sector Undertaking and it received a Show Cause Notice (SCN) by State Tax Authority which was dropped. Thereafter, Central Tax authority issued another notice for same period on same issue under section 73 of CGST Act.

It filed writ petition and challenged the notice by contending that there was no occasion or reason to issue another notice making same averments and allegations.

The Honourable High Court noted that the Central Tax Authority issued notice on the ground that earlier enquiry or scrutiny was not conducted properly.

The Court further noted that the petitioner would have a remedy to file reply to the SCN and there was not a case where the principle of natural justice of the petitioner had been violated or the proceedings were without jurisdiction.

Therefore, the Court held that there was no need for interference and petition was liable to be dismissed.

Regards

CA Rahul Gupta

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