The Supreme Court has stayed further proceedings emerging from a Goods and Services Tax (GST) show cause notice after marking that the case raises a jurisdictional problem, while considering the claim of the applicant that the tax authorities had issued a fresh SCN u/s 74 of the Central Goods and Services Tax (CGST) Act, 2017 for the very same tax demand that was already pending in the statutory appeal before the Joint Commissioner (Appeals).
The Bench of Justice Ujjal Bhuyan and Justice Atul S. Chandurkar issued notice in the Special Leave Petition (SLP) which contests the order of the Uttarakhand High Court and directed that all further proceedings under the SCN dated 21 February 2025 shall remain stayed till the next hearing date. The case has been listed for further consideration on 29 September 2026.
The dispute arose after the tax department passed an adjudication order against the applicant u/s 74 of the UKGST Act on 8 July 2025. The Uttarakhand High Court did not consider a writ petition contesting the order and refused to exercise its writ jurisdiction, noting that the applicant had an effective statutory remedy u/s 107 of the Act.
The HC said that since an appeal procedure was present under the GST law, the applicant could not skip the statutory remedy by invoking the writ jurisdiction under Article 226 of the Constitution. As a result, the writ petition was dismissed on May 30, 2026, allowing the petitioner to pursue the statutory appeal.
Before the Supreme Court, the petitioner contended that, while an appeal against the adjudication order was already pending before the Joint Commissioner (Appeals), the GST authorities issued another SCN u/s 74 of the CGST Act concerning the same tax demand.
Applicant said that such parallel proceedings amounted to a jurisdictional error, as the authorities could not pursue fresh adjudication over an issue that was already under appellate consideration.
The applicant claimed that this jurisdictional issue had been skipped by the Uttarakhand High Court while dismissing the writ petition.
The Apex Court heard the applicant’s counsel and discovered that the claim is adequate to warrant examination. The court issued notice in the special leave petition and granted interim protection by staying all further proceedings initiated under the impugned SCN dated 21 February 2025 till further orders.
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The interim order prevents the GST authorities from moving forward with new adjudication while the Supreme Court reviews whether the issuance of the second SCN is lacking in jurisdiction.
This interim order from the Supreme Court is expected to draw attention from taxpayers and GST professionals who are navigating situations involving overlapping adjudication and appellate proceedings.
| Case Title | M/S Devendra Construction Vs Deputy Commissioner |
| Case No. | Special Leave to Appeal (C) No(s). 24729/2026 |
| For the Petitioner | Mr Fuzail Ahmad Ayyubi, Mr Ibad Mushtaq, Ms Akanksha Rai, Ms Gurneet Kaur, Mr Wahid Ahmad |
| Supreme Court | Read Order |
