ORAL JUDGMENT

(Per: HONOURABLE THE CHIEF JUSTICE)

Date : 18-07-2024 The petitioner is before this Court challenging a demand cum show-cause notice issued under Section 74(1) of the Central/Bihar Goods and Services Tax Act, 2017. We were of the opinion that the petitioner could take all contentions before the authority, and there could be no challenge entertained against a show-cause notice issued. The learned Counsel for the petitioner, however, insisted that there is an illegality in the issuance of the notice, specifically of non-compliance of the provisions of the Goods and Services Tax Act (for brevity, GST Act).

2. Learned Counsel for the petitioner specifically took us to Section 61 of the GST Act, which was read with Rule 99 of the Bihar GST Rules, 2017. It is pointed out that Section 61, speaks of scrutiny of returns after which there is an obligation to inform the assessee about any discrepancy noticed, and call for the assessee’s explanation. Sub-section (2) provides for the dropping of the proceeding if the explanation offered is accepted, and, in case no satisfactory explanation is furnished, then appropriate action could be taken under Sections 65 to 67 or Section 73 or