"SECOND/SUBSEQUENT NOTICE"

"SECOND/SUBSEQUENT NOTICE"

Research by: Abhishek Raja Ram; 9810638155

Can a second/subsequent notice be issued on the same grounds?

What is the validity of the Adjudication Notice after the Departmental Audit?

Can Notice U/s 74 be issued after adjudication U/s 73?

These are various doubts/questions to which we seek answers.

1. ???? Calcutta HC Pauses SGST Proceedings Pending CGST Adjudication! ????

The court directed the audit wing of the SGST Authority to suspend all proceedings related to the specific discrepancy noted in the audit memo as the subject matter is pending adjudication by the CGST Authority.

Mr. Mahabir Prasad Kedia vs. The Assistant Commissioner of State Tax

(2024) 1 TMI 1098

2. ???? Chhattisgarh HC Upholds Validity of Third Show Cause Notice Under GST! ????

In South Eastern Coalfields Limited vs. Principal Commissioner, CGST, the petitioner challenged the third notice after the authorities dropped two previous notices (issued in 2021 and 2022). However, the Court found that the respondents acted within their legal authority under Section 73 of the GST Act. ???

(2023) 11 TMI 399

3. ???? Jharkhand HC Upholds Second Show Cause Notice – Petitioner Must Address Discrepancies! ????

In M/S. Jindal Stone Works vs. State of Jharkhand (2024) 10 TMI 880, the Jharkhand High Court ruled on the validity of a second Show Cause Notice (SCN) issued under Section 61 of the JGST Act, 2017. ??

The Court found that the 2nd notice addressed new discrepancies and didn’t cause any prejudice to the petitioner.

(2024) 10 TMI 880

4. ???? Bombay HC Allows Reply to Fresh SCN, Distinguishes from Previous Adjudication! ????

In Deccan Nutraceuticals Pvt. Ltd. vs. Union of India, the Bombay High Court ruled that the petitioner must respond to a new show cause notice (SCN) related to the 2014-2015 period, despite having an earlier SCN for 2012-2014 that was already adjudicated and dismissed. ????

(2022) 5 TMI 570 :: (2022) 64 GSTL 47

Conclusion:

In conclusion, courts have generally upheld the validity of second or subsequent notices under specific circumstances, such as the emergence of new discrepancies or the application of different statutory provisions. However, courts may suspend related proceedings to prevent duplication and prejudice when adjudication is pending with another authority. Taxpayers should carefully assess each notice and seek legal guidance to protect their rights in such situations.

Thanks

ARR