Baba Minerals Vs Union Of India (Rajasthan High Court)
The Rajasthan High Court addressed a writ petition filed by Baba Minerals challenging a show cause notice dated 31.07.2024 issued by the Deputy Director of the Directorate General of Goods and Services Tax Intelligence (DGGSTI), Jaipur Zonal Unit. The petitioner, a registered dealer under the GST Act, 2017, sought to quash the notice on the grounds that the DGGSTI lacks jurisdiction to act as an adjudicating authority for state-allocated cases, citing Section 6(1) of the GST Act. The petitioner claimed that the notice pertained to allegations of fake input tax credit (ITC) generation and cash transactions relying on fraudulent invoices.
The respondents argued that based on intelligence inputs, investigations, and searches, evidence suggested the petitioner’s involvement in such fraudulent activities. They further contended that under a circular dated 09.02.2018, DGGSTI officers were empowered to issue show cause notices. The High Court observed that the petitioner had challenged the notice without responding to it and that the issues raised required factual determination. The court dismissed the petition as premature, emphasizing that procedural steps, including filing a reply to the notice, must precede such legal challenges.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
