2025 (6) TMI 744 - HC - GST

Challenge to adjudication order - scope of SCN - original SCN addressed only an IGST demand with interest and penalty with no CGST or SGST demands proposed - after limitation period expired a subsequent notice increased the IGST demand and introduced CGST and SGST demands - HELD THAT - The matter requires consideration. Learned counsel for the respondents are granted six weeks time to file counter affidavit. Rejoinder affidavit if any may be filed within two weeks thereafter - List immediately thereafter.

Summary

The Allahabad High Court, before Hon'ble Justices Saumitra Dayal Singh and Sandeep Jain, heard a petition challenging an adjudication order on jurisdictional grounds. The petitioner contended that the original show cause notice addressed only an IGST demand of Rs. 2,98,23,691/- with interest and penalty, with no CGST or SGST demands proposed. After the limitation period expired on 30.11.2024, a subsequent notice dated 18.12.2024 increased the IGST demand and introduced CGST and SGST demands of Rs. 19,777/- each. However, the impugned order ultimately showed no IGST demand but substantially increased CGST and SGST demands to Rs. 2,76,62,622/- each, exceeding the original notice.The petitioner argued the adjudication order was "wholly without jurisdiction" due to expiry of limitation and because it was "wholly in excess and contrary to the original show cause notice." The Court granted six weeks for the respondents to file a counter affidavit, with rejoinder in two weeks, and stayed the operation of the order dated 20.02.2025 until the next listing. The matter requires further consideration.