Case Law Details
New Morning Star Travels Vs Deputy Commissioner (ST) (Andhra Pradesh High Court)
Explore the Andhra Pradesh High Court judgment on New Morning Star Travels vs. Deputy Commissioner (ST). Analysis of GST assessment order implications.
The Andhra Pradesh High Court recently passed a judgment in the case of New Morning Star Travels vs. Deputy Commissioner (ST) concerning a GST assessment order. The judgment revolves around the issuance of a show cause notice without a prior tax intimation, which the petitioner argued was a violation of the relevant rules. This article provides a detailed analysis of the case and its implications.
Background of the Case: The petitioner, New Morning Star Travels, challenged an assessment order dated 31st March 2022, which encompassed tax, penalty, and interest for the assessment period spanning from 1st July 2017 to 31st March 2020. The crux of the petitioner’s argument was the absence of a show cause notice in accordance with Rule 142(1A) of the Central Goods and Services Tax (CGST) Rules, 2017.
Rule 142(1A) – Pre-Amendment vs. Post-Amendment: Rule 142(1A) of the CGST Rules, 2017, played a pivotal role in this case. The critical distinction lies in its wording before and after an amendment that came into effect on 15th October 2020. The pre-amendment rule stated that the “proper officer shall” communicate tax details before issuing a notice. However, the amendment replaced “shall” with “may,” making the issuance of such communication discretionary.
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