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The Hon’ble Punjab & Haryana High Court in the case of Group M. Media India (P.) Ltd. dismissed writ petition and held that Issuance of Show Cause Notice under Section 73 of the CGST Act and dropping proceedings would not prevent the department from independently initiating subsequent proceedings under Section 74 of the CGST Act.
The Hon’ble Delhi High Court in the case APN Sales and Marketing held that an order which does not provide sufficient reasons is not legally sustainable as it is in violation of principles of natural justice and the allegations mentioned in the Show Cause Notice were not mentioned in the Order.
CBIC issued Notification no. 31/2024 – Central Tax dated 13.12.2024 to appoint common adjudicating authority for Show cause notices issued by officers of DGGI
Taxpayers who donated to Registered Unrecognised Political Parties (RUPP) to claim deductions under Sections 80GGC/ 80GGB of the Income Tax Act have started getting show-cause notices from the department. These notices question why the deduction should not be disallowed, as these political parties have confessed that most of the donation was returned to the ‘donors’ after taking a cut. Chartered Accountants said that donors will be required to reply to these notices soon and it is likely that the department will issue orders before the end of March.
The Hon’ble High Court of Madras in the case Sundarapandian held that an order released without giving proper opportunity to reply to the Show Cause Notice (“SCN”) is contrary to principles of natural justice.
The Hon’ble Madras High Court in the case Tvl. Senthil Hardwares v. State Tax Officer, Pattukottai [W.P. (MD) No. 17626/2024 dated July 30, 2024] the order where a Show Cause Notice (“SCN”) was issued to the Assessee vide FORM DRC-01 and reply filed by the Assessee was accepted by the Department, but certain part of demand was confirmed vide the Order in respect of defect, which was not part of notice.
The Hon’ble Delhi High Court in the case HCL Infosystems Ltd. v. Commissioner of State Tax & anr[W.P.(C) 7391/2024 dated November 21, 2024] quashed the show cause notice and the final order issued in the name of Amalgamating Company post-merger because they were against Section 87 of the Central Goods and Services Tax Act (“the CGST Act”) and 160 of the CGST Act. The court held that the preceding cannot be brought to a merged entity and it is a substantive error that cannot be cured.
CBIC issued Notification no. 28/2024 – Central Tax dated 27.11.2024 seeking to appoint common adjudicating authority for Show cause notices issued by DGGI
Paints and coatings maker Akzo Nobel India on Wednesday said it has received show cause notices from tax authorities of Karnataka and Uttar Pradesh, demanding a total sum of over Rs 46 crore over disallowance of input tax credit and tax dues. The company received a show cause notice from the Karnataka GST Department on November 26, 2024, mentioning disallowance of ITC (input tax credit) and tax due for the period from April 2020 to March 2021, aggregating to Rs 44.5 crore, comprising tax of Rs 24 crore; interest of Rs 15.75 crore and penalty of Rs. 4.8 crore, Akzo Nobel India said in a regulatory filing.
Office of the Commissioner of State Tax, Kerala issued a Circular no. 21/2024- Kerala GST regarding Adjudication of Show Cause Notices – Common Adjudicating Authority.