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IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
ARUN BHANSALI, ASHUTOSH KUMAR, JJ.
M/s Nestle India Limited - Petitioner
Versus
Union of India and Ors. - Respondents
D.B. Civil Writ Petition No. 19495 of 2023
Decided On : 18-12-2023
ORDER :
Pursuant to the order dated 04.12.2023, the Additional Commissioner, CGST, Jaipur has passed the order relating to the jurisdiction and has come to the conclusion that he has the jurisdiction to issue the show-cause notice.
2. Miscellaneous application (01/2023) has been filed by the respondents to place the said order on record.
3. The application No.01/2023 is allowed. Order dated 13.12.2023 is taken on record.
4. Learned counsel for the petitioner with reference to the order dated 13.12.2023 passed by the authority on the aspect of jurisdiction, made submissions that the determination made is contrary to the language of the Section 65 (7) of the Central Goods and Services Tax Act, 2017 ('the Act') inasmuch as if the said determination is accepted, the same would result in issuance of multiple show-cause notices based on one single audit report.
5. With reference to the definition of 'Proper Officer' under Section 2(91) of the Act and notification dated 10.02.2019 (Annexure-4), submissions have been made that only one notice based on the audit report as per the monetary limit involved in the said show-cause notice could be issued and as in the present case, notice dated 17.08.2023 (Annexure-2) had already been issued by the Superintendent, the notice dated 25.09.2023 (Annexure-1) could not be issued by the Additional Commissioner, CGST.
6. Learned counsel for the respondents prays for time to file reply to the writ petition and made submissions that the determination made on the jurisdiction by the authority is justified as the language of Section 65 (7) of the Act cannot be confined to issuance of one single notice and that based on each paragraph of the audit report, a separate show-cause notice by the Jurisdictional Officer can be issued.
7. Matter requires consideration.
8. Issue notice. Issue notice of the stay application also.
9. List the matter on 30.01.2024.
10. In the meanwhile and till the further order, proceedings pursuant to the show-cause notice dated 25.09.2023 (Annexure-1) before the Additional Commissioner, CGST, Jaipur shall remain stayed.
11. As the order is passed in the presence of learned counsel for the respondents, they would be free to seek vacation of the interim order after filing of the reply to the petition.
The court stayed proceedings on a show-cause notice, indicating the need for further consideration of jurisdiction under Section 65(7) of the Central Goods and Services Tax Act, 2017.
Simultaneous show cause notices by Central and State GST authorities violate Section 6(2)(b) of the CGST/SGST Act and GST Council guidelines.
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The jurisdiction of CAG is limited to government departments, and show cause notices based on its audit findings are valid unless issued improperly.
Multiple Show Cause Notices can exist for the same tax period under GST if they pertain to different subjects, reinforcing the absence of a bar under the GST regulations.
Composite show-cause notices covering multiple financial years under CGST/KGST Act are illegal as assessments must pertain to individual years, respecting statutory limitations and ensuring natural j....
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