Case Law Details
Mr. Mahabir Prasad Kedia, Proprietor of M/s. Sanjay Casting & Eng. Co. Vs Assistant Commissioner of State Tax (Calcutta High Court)
Introduction: The case of Mr. Mahabir Prasad Kedia, the proprietor of M/s. Sanjay Casting & Eng. Co., against the Assistant Commissioner of State Tax is under scrutiny. The petitioner filed an appeal challenging the order denying interim relief. The focus is on Discrepancy No. 3 highlighted in the audit memo. The petitioner contends that a show cause notice by the anti-evasion wing of CGST is already under adjudication, and the State GST Authority should await its resolution.
Detailed Analysis: The appellant received an audit memo pointing out various discrepancies, with a specific concern regarding Discrepancy No. 3. The petitioner informed the SGST Authority about an ongoing show cause notice by the CGST anti-evasion wing covering the mentioned points. Despite the reply submitted to the CGST Authority, the State GST Authority was not convinced that Discrepancy No. 3 had been settled.
The audit wing of the State GST Authority proceeded to issue a show cause notice dated 29.12.2023. The petitioner argues that since Discrepancy No. 3 is already under adjudication by the CGST Authority through the show cause notice dated 28.03.2023, the SGST Authority should keep all proceedings, including the latest show cause notice, in abeyance. The petitioner urges alignment with the adjudication order from the CGST Authority.
Conclusion: The Calcutta High Court has directed the SGST Authority to put on hold all proceedings related to Discrepancy No. 3, including the show cause notice dated 29.12.2023. The court emphasizes the importance of awaiting the adjudication order from the CGST Authority, represented by the fourth respondent, based on the show cause notice dated 28.03.2023. This ensures a coordinated and aligned resolution process for the pending matters, providing clarity and fair consideration for the petitioner.
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