2025 (7) TMI 1400 - HC - GST

Challenge to SCN in Form DRC-01A - challenge on the ground that the respondent could not have assumed the jurisdiction on the basis of the receipt shown in Form 26AS under the Income Tax Act 1961 and could not have recalculated the revenue from operations on the basis of the details mentioned therein - HELD THAT - The petition is not entertained on merits with the liberty to the petitioner to file an appeal before the first Appellate Authority who shall entertain the appeal if filed within a period of four weeks from today without insisting to deposit any further pre-deposit as the petitioner has already deposited Rs.7 lakhs as a pre-deposit during the pendency of this petition. Petition disposed off.

Summary

ISSUES:

Whether the respondent authority had jurisdiction to issue show-cause notices based on Form 26AS under the Income Tax Act, 1961, and to recalculate revenue from operations accordingly.Whether the impugned show-cause notice dated 02.08.2024 and the Order-in-Original dated 31.12.2024 are liable to be quashed.Whether the petitioner is entitled to a stay on the implementation and execution of the Order-in-Original during the pendency of the petition.Whether the petitioner's deposit of pre-deposit amount entitles it to prefer an appeal before the Appellate Authority without further pre-deposit requirements.

RULINGS / HOLDINGS:

The Court did not adjudicate on the merits of the jurisdictional issue regarding reliance on Form 26AS but allowed the petitioner to file an appeal before the Appellate Authority.The impugned show-cause notice and Order-in-Original were not quashed; instead, the petition was not entertained on merits, providing liberty to file an appeal.The Court did not grant a stay on the implementation or execution of the impugned Order-in-Original but permitted the petitioner to challenge the order through appeal after depositing the pre-deposit.Since the petitioner deposited Rs.7 lakhs as pre-deposit during the pendency of the petition, the Appellate Authority shall entertain the appeal without insisting on any further pre-deposit.

RATIONALE:

The Court exercised jurisdiction under Article 227 of the Constitution of India to supervise subordinate authorities but refrained from deciding the substantive issues, deferring them to the Appellate Authority under the Central/State Goods & Services Tax Act, 2017.The legal framework applied includes the provisions of Section 107 of the Central/State Goods & Services Tax Act, 2017, which governs appeals against orders passed by tax authorities.The Court recognized the principle that an appeal must be entertained if the prescribed pre-deposit is made, and accordingly, waived further pre-deposit requirements given the petitioner's compliance.No dissenting or concurring opinions were expressed; the Court clarified that it did not examine the merits and that the appeal shall be decided strictly in accordance with law.