GST Penalty Notice Invalid Where Jurisdiction Not Clearly Established: AP HC

Ganapathi Ispat Vs Union of India (Andhra Pradesh High Court)

The Andhra Pradesh High Court considered a writ petition challenging a show cause notice dated 01.09.2025 issued under Section 122 of the CGST Act, proposing levy of penalties on allegations of circular trading based on information gathered by the Central Intelligence Unit. The petitioner questioned the jurisdiction of the issuing authority, contending that Section 122 itself does not confer power to initiate proceedings, does not prescribe a hearing mechanism, and does not provide any limitation period.

The Reven

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