Minimol Sabu Vs State of Kerala (Kerala High Court)
The Kerala High Court addressed a petition filed by Minimol Sabu, contesting a show cause notice issued under Section 74 of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts. The petitioner’s counsel argued that the notice lacked a valid cause of action for invoking Section 74, asserting that the notice also incorrectly pertained to a separate entity, registered under a different number, belonging to the petitioner’s husband. The petitioner had submitted a reply to the show cause notice, outlining these objections. The petitioner sought a directive similar to a previous court order, which required the adjudicating authority to consider preliminary issues before proceeding with adjudication. The State’s counsel, representing the government, maintained that the writ petition under Article 226 of the Constitution was not warranted, and that all contentions, including the validity of invoking Section 74, should be addressed by the adjudicating authority.
The court, after considering the arguments and referencing a precedent case, directed the adjudicating authority to treat the petitioner’s objections as preliminary issues. Specifically, the authority was instructed to first determine whether the show cause notice, in part, pertained to a separate legal entity with a distinct registration number, and to assess the petitioner’s challenge to the invocation of Section 74. This preliminary determination was to be completed before any further adjudication of the other issues raised in the show cause notice. The court disposed of the writ petition with this directive, ensuring that the petitioner’s fundamental concerns regarding the scope and validity of the notice were addressed prior to a full adjudication of the matter. This decision aims to streamline the adjudication process by mandating a clear resolution of jurisdictional and procedural challenges at the outset.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
