RR Metal Industries Vs Union of India (Telangana High Court)
GST: The Hon’ble Telangana HC has stayed a composite SCN issued under Sections 74, 74A, and 130 of the CGST Act, questioning the legality of such consolidated proceedings and granted interim relief
The Petitioner is a manufacturer of metal products. DGGI visited its premises and seized certain stocks. It was alleged that it had received invoices without goods. It was issued a show cause notice proposing demand of GST for financial years 2022-2023 to 2025-2026 under Section 74 and 74A of the CGST Act; along with a proposal to confiscate the goods under Section 130 of the Act. The show cause notice was challenged in a writ petition.
The Hon’ble Telangana High Court stayed the show cause notice. It held: (i) prima facie a consolidated notice issued under Section 74; Section 74A and Section 130 cannot be issued; (ii) It notes that the Delhi High Court is re-examining its view taken in Ambika Traders; post direction from Supreme Court in M/s. Aparna Collection; (iii) challenge to notice as it is contrary to law and facts; hence; directs the Department to file affidavit in reply on the said issues.
Argued by Adv. Bharat Raichandani a/w Adv. Venkata Prasad.
