27 Mar Consolidation of Adjournment in GST Proceedings
In the legal matter of Pioneer Co-Operative Car Parking Servicing and Constructions Society Ltd. against Senior Joint Commissioner [WPA No. 3092 of 2024 dated March 1, 2024] at the Calcutta High Court, the petition was resolved, establishing that an adjournment granted for Show Cause Notice (SCN) proceedings under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) cannot be merged with an adjournment granted for other proceedings under GST.
Facts of the case:
Pioneer Co-Operative Car Parking Servicing and Constructions Society Ltd. (“the Petitioner”) is a cooperative society registered under the West Bengal Cooperative Societies Act, 1973. It operates in collecting parking fees. The Petitioner received an SCN on September 12, 2023, from the Revenue Department (“the Respondent”) under Section 73(1) of the CGST Act. The Petitioner responded to the notice. Subsequently, a Final Order dated November 6, 2023 (“the Impugned Order”) was issued, determining the tax liability under Section 73(9) of the CGST Act.
The Petitioner, dissatisfied with the Impugned Order, filed a writ petition alleging inadequate opportunity for a hearing.
Issue:
Whether adjournment granted for Show Cause Notice proceedings under Section 73 of the CGST Act can be clubbed together with adjournment granted for other proceedings under GST?
Held:
The Calcutta High Court, in the case of WPA No. 3092 of 2024, made the following determinations:
- It was observed that under sub-section (5) of Section 75 of the CGST Act, the proper officer may grant adjournment upon sufficient cause shown, with written reasons. However, such adjournments should not exceed three times during the proceedings.
- It was reasoned that adjournments granted to the Petitioner concerning proceedings under Section 61 of the CGST Act should not be combined with SCN proceedings. Thus, the Petitioner had adequate opportunities to respond to the SCN issued under Section 73(1) of the CGST Act.
- The communication dated February 15, 2024, regarding tax recovery was deemed unsustainable and subject to annulment.
- It was directed that the Petitioner must submit a response to the SCN, and the Respondent should schedule a personal hearing accordingly.
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