Telangana HC Takes Up Plea Challenging GST Notification

A two-judge panel of the Telangana High Court took on file a writ plea challenging a notification issued by the authorities, who amended Rule 142(1A) of the CGST Rules 2017. The provision primarily deals with the communication of tax liability before issuing a show cause notice (SCN) under Section 74 of the CGST Act, 2017. The panel, comprising acting Chief Justice Sujoy Paul and Justice Renuka Yara, was dealing with a writ petition filed by KH Facility Solutions India Pvt. Ltd. The petitioner challenged the multiple GST proceedings, including a spot memo, a show cause notice, and a tax order confirming liabilities for FY 2017-18 to 2021-22. Senior counsel, appearing for the petitioner, contended that tax actions were arbitrary, illegal and in violation of natural justice. He argued that the amendment exceeded the legislative mandate of Section 74 of the CGST Act and violated fundamental rights guaranteed under the Constitution. The panel directed the Central Board of Indirect Taxes and Customs (CBIC) to seek instructions in this matter and posted it for further hearing on April 1.