M/S. George Clinical INDIA Private Limited vs. Union Of INDIA

Held

The Court held that with respect to the order dated 16.03.2020 (Annexure-‘AG’), the petitioner should file an appeal as provided under Section 112 of the CGST Act. The Court noted that the clarification circular provided for filing appeals within three months from the date of constitution of the Tribunal or the date the President enters office. As the Tribunal had not yet been constituted, the petitioner was directed to file an appeal against Annexure-‘AG’ within three months from the date of the Tribunal's constitution or the President entering office. Regarding Annexure-‘AH’, the show cause notice dated 04.06.2020, the Court directed the petitioner to file a reply within two weeks, bringing to the authorities' notice any discrepancies. The Adjudicating Authority was then to consider the reply, adjudicate the issue, and pass orders in accordance with the law. No precipitative action was to be taken by the respondents pursuant to Annexure-‘AH’ until the Adjudicating Authority passed an order. The writ petition was disposed of with these observations.

Facts

The petitioner, M/s. George Clinical India Private Limited, filed a writ petition before the Karnataka High Court challenging an order dated 16.03.2020 passed by the Commissioner of Central Tax (Appeals-II) and a show cause notice dated 04.06.2020. The petitioner sought to quash both the appellate order and the show cause notice. The respondents, Union of India and various GST authorities, were represented. The petitioner argued that the show cause notice included demands for a previous period (July-2017 to April-2018) for which no appeal order was directed. The respondents submitted a clarification circular dated 18.03.2020 and pointed out Clause 4.2, stating that the appellate order was appealable and the show cause notice required a reply.

Key Issues

1. Whether the petitioner should be directed to file an appeal against the order dated 16.03.2020 passed by the Commissioner of Central Tax (Appeals-II) under Section 112 of the CGST Act, considering the non-constitution of the GST Tribunal? (Mixed question of law and fact) 2. Whether the show cause notice dated 04.06.2020, which includes demands for the period July-2017 to April-2018, is valid, given that no specific order directed an appeal for this period? Petitioner's Contentions: The petitioner contended that the show cause notice improperly included demands for the period July-2017 to April-2018, as there was no prior order directing an appeal for this specific period. Therefore, the inclusion of these demands in the show cause notice warranted interference. Respondents' Contentions: The respondents submitted a clarification circular dated 18.03.2020, highlighting Clause 4.2. They argued that the order dated 16.03.2020 was appealable under the CGST Act, and the show cause notice was a preliminary step requiring the petitioner to submit a reply before adjudication.