Zeta International Vs Additional Director (Delhi High Court)
The Delhi High Court considered a writ petition challenging the constitutional validity of Notification No. 79/2020–Central Tax dated 15 October 2020, which amended Rule 142(1A) of the CGST Rules, 2017 by making pre-consultation before issuance of a show cause notice discretionary instead of mandatory. The Court issued notice and directed parties to file written submissions. It ordered that the petitioner must participate in the ongoing show cause proceedings and be granted a personal hearing. While proceedings pursuant to the show cause notice dated 25 February 2025 may continue and a final order may be passed, such order shall not be given effect to without further directions. The matter was listed for a future hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
CM APPL. 70827/2025 & CM APPL. 70828/2025
2. Allowed subject to all just exceptions. Accordingly, the applications are disposed of.
W.P.(C) 17220/2025 & CM APPL. 70826/2025
3. The present petition has been filed by the Petitioner under Articles 226 and 227 of the Constitution of India, inter alia, challenging the Constitutional validity of Notification No. 79/2020 – Central Tax dated 15th October, 2020 issued by the Central Board of Indirect Taxes and Customs by which Rule 142(1A) of the Central Goods and Service Tax Rules, 2017 was amended by making pre-consultation to the Show Cause Notice (hereinafter, ‘SCN’) discretionary. Prior to the amendment, such a notice was held as being mandatory owing to the language of the provision.
