Rajkonwar And Sons And Anr Vs Union of India And 6 Ors (Gauhati High Court)
The Gauhati High Court considered a writ petition filed by the petitioners challenging a show cause notice dated 01.04.2022 issued by respondent No.7 under Section 74 of the Assam Goods and Service Tax Act, 2017, requiring a reply by 30.04.2022. An interim order dated 29.06.2022 had directed the State GST authorities not to take coercive action pursuant to the notice, and the interim protection was extended from time to time. During the pendency of the proceedings, a further show cause notice dated 23.09.2025 was issued under Section 74 of the Central Goods and Service Tax Act, 2017. The petitioner participated in those proceedings, culminating in an Order-in-Original dated 12.02.2026 demanding Rs.1,36,96,200/- as short-paid tax along with interest under Section 50 and an equivalent penalty of Rs.1,36,96,200/- under Section 74(9) of the CGST Act, 2017 and AGST Act, 2017. The petitioners challenged that Order-in-Original through an interlocutory application instead of pursuing the statutory appeal under Section 107 of the CGST Act, 2017. The Court held that the original challenge to the 01.04.2022 notice had become infructuous because of the subsequent proceedings and final Order-in-Original. It also found no jurisdictional error in the Order-in-Original and held that the challenge through the interlocutory application was misconceived. However, considering the petitioners’ submission that they had proceeded on mistaken legal advice and had been diligently and bona fide pursuing the proceedings, the Court granted liberty to avail the appellate remedy under Section 107. It directed that an appeal filed within 30 days from the date of the order be considered on merits without insisting upon limitation. The earlier interim order was vacated.
