In a significant development, the Delhi High Court has stayed proceedings related to a contested Show Cause Notice ( SCN ) issued by the Anti-Evasion Wing of the Central Goods and Services Tax ( CGST ) Commissionerate. The matter pertains to a writ petition filed by M/S Siemens Healthcare Pvt. Ltd., challenging the legality of the transfer of an ongoing GST audit to the Anti-Evasion Wing.
The petitioner’s counsel argued that the transfer, executed by the GST audit wing to the Anti-Evasion Wing, was not supported by statutory provisions. It was contended that such a transfer lacks the jurisdiction or authority conferred under the existing GST law, thereby rendering the SCN and subsequent proceedings invalid.
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The matter was heard by a bench comprising Justice Yashwant Varma and Justice Dharmesh Sharma. During the initial hearing on December 2, 2024, the court acknowledged the gravity of the petitioner’s challenge and granted time for the respondents to obtain instructions and make their submissions.
However, the respondents were unable to substantiate the legality of the transfer, leading the court to issue a temporary stay on further proceedings related to the SCN dated August 2, 2024.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
In its interim order, the court restrained the Anti-Evasion Wing from continuing with the proceedings initiated under the impugned SCN. However, the bench clarified that the order does not prejudice any lawful actions the GST audit wing may undertake in accordance with its jurisdiction.
The respondents have been directed to file their reply within three weeks, while the petitioner has two weeks thereafter to file a rejoinder. The case is scheduled for its next hearing on January 17, 2025.
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