In a recent case, the Orissa High Court stayed the proceedings initiated against OLA under Central Goods and Service Tax ( CGST ) and held that Directorate General of GST Intelligence ( DGGSTI ) is not an adjudicating authority.
Mr. Sachdeva, advocate appeared on behalf of petitioner Ani Technologies Pvt. Ltd popularly known as OLA., challenged the show cause notice dated 12th September, 2022 culminating in order dated 29th August, 2024 containing aggregate demand of ₹16,08,870/-. The notice and demand were issued by the State authority. He draws attention to show cause notice dated 31st March, 2022 issued by the DGGSTI addressed, inter alia, to his client at its registered address in Bhubaneswar.
The period covered by the notice requiring reply as to why demand should not be made in respect of his client’s operation in Odisha, is for year 2019-20. He then draws attention to paragraph-28.9 (internal page 62) of show-cause notice to demonstrate that reply against demand of total amount of ₹8,53,6921/-(GST) was sought from his client. On query, it was submitted that reply has been filed to the notice and adjudication awaited before the Additional/Joint Commissioner of Central Goods and Services Tax, Office of the Principal Commissioner of Central Tax, Chennai South.
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Mr. Mishra,Standing Counsel appeared on behalf of opposite party no.1 , State Authority. Relying on paragraph-6 in the circular he points out, DGGSTI is not the adjudicating authority. Hence, reliance upon show cause notice dated 31st March, 2022 issued by the DGGSTI should not cause interference. Drawing further attention to the notice, he points out there was request to the State authority to, inter alia take further necessary action.
“we have not been told of a point in time where adjudication commences after issuance of show cause notice. In the circumstances, petitioner’s reliance on clause (b) under sub-section (2) in section 6 renders prima facie satisfaction for staying, at this stage, impugned order till next date of hearing. Mr. Mishra protests on submission that no adjudication will be done pursuant to said show cause notice dated 31st March, 2022 issued by the DGGSTI. Issuance of impugned show cause notice and order are the action taken pursuant to said show cause notice.”, the division bench of Justice Arindam Sinha And Justice M.S. Sahoo held.
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The court directed to file Counter by 18th October, 2024 and held that the petitioner may file rejoinder, to be accepted on adjourned date..
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