The Allahabad High Court has held that no bar in law in issuing two show cause notices under GST for the same period with different subject matter.
The bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar has observed that show cause notices issued to the petitioner reveals that the subject matter of both the notices is totally different from each other and, therefore, apparently there is no bar in law in issuing two show cause notices for the same period with a different/distinct subject matter and, therefore, to that extent, no interference to the show cause notice is made out.
The petitioner/assessee was issued show cause notice by the Assistant Commissioner (AE), CGST, Meerut in relation to the availment of ITC for effecting taxable as well as exempted supply in which no separate record was allegedly maintained by the petitioner. Subsequent, notice has been issued to the petitioner in relation to mis-classifying the product as in exempted goods instead of taxable at the rate of 5%.
The petitioner contended that the department are not justified in issuing two notices for the same period and, therefore, the issuance of subsequent notice deserves to be set aside.
The department contended that the subject matters of both the show cause notices are totally different and independent to each other and there is no bar in law in issuing more than one show cause notice for the same period on different subject matters. In the show cause notice dated 30.07.2024 issued to the petitioner, the fact that issue pertaining to applicability of tax on supply of poultry feed supplements which were cleared by the petitioner as exempted supply, has already been taken up by the DGGI-HQ, New Delhi. Therefore, the aspect was not being taken into consideration, was specifically noticed and in those circumstances, the issuance of notice dated 04.08.2024 cannot be questioned.
The court upheld the show cause notice and held that so far as the plea pertaining to two show cause notices being adjudicated by two different authorities is concerned, the petitioner would be free to approach the said authorities and, in case, petitioner approaches the authorities, the authority would take a view on the subject and examine viability of both the show cause notices being adjudicated by the same authority.
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Case Details
Case Title: M/S ALM Industries Limited Versus Assistant Commissioner (AE) Central Goods and Services and 2 others
Case No.: Writ Tax No. – 2505 Of 2024
Date: 10.1.2025
Counsel For Petitioner: Aditya Pandey
Counsel For Respondent: Parv Agarwal
