Lakshmi Mobile Accessories Vs Joint Commissioner (Kerala High Court)
The Kerala High Court examined a writ petition challenging a show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017. The petitioner sought quashing of the notice, separate adjudication orders for different financial years from 2018–2019 to 2023–2024, sufficient time to respond, and an opportunity for cross-examination. The show cause notice dated 29 July 2024 proposed imposition of tax, penalty, and interest, and scheduled a personal hearing on 22 August 2024. However, the petitioner submitted a detailed reply only on 3 December 2024.
The petitioner argued that the authority was proceeding hastily and intended to issue a composite order without granting adequate opportunity. The Court found these concerns to be speculative, noting that the authority had already provided an opportunity for hearing and had not acted prematurely. It held that there was no evidence to suggest denial of procedural fairness at this stage.
Considering that the limitation period for passing orders for 2017–2018 was expiring on 5 February 2025, the Court declined to interfere with proceedings for that year. However, for subsequent years, the Court directed that reasonable opportunity of hearing be provided and observed that separate adjudication orders should be passed for each financial year. It granted liberty to the authority to proceed in accordance with law, ensuring compliance with procedural requirements. The writ petition was accordingly disposed of.
