Jharkhand HC Stays Two GST Notices Issued on the Same Matter by Authorities

The show-cause notices issued by two distinct bodies on the identical subject matter have been stayed by the Jharkhand High Court because they fall outside of its jurisdiction.

The case has been scheduled for hearing on March 29, 2023, by a division bench of Acting Chief Justice Aparesh Kumar Singh and Justice Deepak Roshan.

Under Section 73(1) of the JGST Act, 2017, the petitioner has challenged the show-cause notice issued by the Assistant Commissioner of State Tax, Office of the Deputy Commissioner of State Tax.

For the same tax period of April 2019–March 2020, the Deputy Commissioner of State Tax issued a second show-cause notice in accordance with Section 73 of the JGST Act, 2017, for which the Appellate Authority has already rendered a decision against the Summary of Order in Form GST-DRC-07 on March 16, 2020.

The administration has not invoked the appellate ruling to a higher court and has so accepted the order in appeal. There was no outstanding demand in this regard.

The show-cause notices issued by two distinct bodies on the same subject matter are without jurisdiction and violate Section 112(3) of the JGST Act of 2017.

For three weeks, the department requested, so they could get directions and file a rebuttal affidavit.

Read also: Impact of System-generated GST Notices on Honest Taxpayers

The Assistant Commissioner of State Tax, Office of the Deputy Commissioner of State Tax, and Deputy Commissioner of State Tax issued the show-cause notice and summary of the show-cause notice, and the court suspended further proceedings in that regard.