K.M. Siddique Vs State of Kerala (Kerala High Court)
In the case K.M. Siddique vs State of Kerala, the petitioner challenged a show cause notice issued under Section 74 of the Central and State Goods and Services Tax Acts, 2017 (CGST/SGST Act). The core contention was the absence of any specific material or allegation in the notice justifying the invocation of the extended limitation period prescribed under Section 74. The petitioner argued that the extended limitation could only be applied in instances involving fraud, suppression, or misrepresentation, none of which were mentioned in the impugned notice. It was submitted that the issue of whether such conditions existed is a jurisdictional fact that the High Court can examine under Article 226 of the Constitution, given that the notice allegedly lacked foundational grounds.
On the other hand, the respondents, represented by the Senior Government Pleader and Standing Counsel, maintained that the validity of invoking the extended limitation period is a matter of factual determination, which should be addressed by the competent adjudicating authority. They argued that the petitioner had not demonstrated any jurisdictional error or violation of fundamental rights warranting direct interference by the High Court at the show cause stage.
After considering arguments from both sides, the Kerala High Court held that the petition could be disposed of without going into the merits. The Court directed the adjudicating authority (the 2nd respondent) to treat the issue of whether the extended limitation under Section 74 was validly invoked as a preliminary issue. The petitioner was instructed to submit a reply to the show cause notice, specifically addressing objections to the extended limitation, within two weeks of receiving the certified copy of the judgment. The adjudicating officer was directed to pass a reasoned order on the limitation question before continuing with further proceedings under the notice. The Court also specified a date and time for the petitioner’s representative to appear before the authority to facilitate the process.
