Emmanuel Constructions Private Limited Vs Principal Secretary To The Govt. Finance Department (Karnataka High Court)
The petitioner sought relief before the Karnataka High Court requesting quashing of an adjudication order dated 31 August 2024 and directions to the respondent authorities to issue separate show cause notices for financial years 2019–20 and 2020–21. The petitioner also sought any other appropriate relief.
The Court heard the petitioner’s Senior Counsel and the respondents’ Additional Government Advocate (AGA). Referring to the material on record, the petitioner argued that the show cause notice issued in Form GST DRC-01 dated 23 November 2023 encompassed two assessment years, 2019–20 and 2020–21, which was asserted to be impermissible. On this basis, it was contended that the show cause notice and all subsequent proceedings, including the challenged adjudication orders, required quashing.
The petitioner further submitted that although a single officer issued the show cause notice, two different officers passed the two subsequent adjudication orders, which, according to the petitioner, was not permissible. Additionally, it was contended that explanations inserted into Rules 42(1)(f) and 42(3) of the CGST Rules, 2017 with effect from 1 April 2019 were not prospective in nature and therefore could not be relied upon by the authorities in passing the impugned order.
