Chhattisgarh HC says DGGI Can Issue SCNs While Adjudication Rests with Executive Commissionerate

The Chhattisgarh High Court dismissed a writ petition challenging a show cause notice issued by the Directorate General of GST Intelligence (DGGI) under Section 74 of the GST Act, proposing penalties under Sections 122(1A), 122(3) and 125. The Court relied on the CBIC Circular dated 12 March 2022, which clarifies that DGGI officers are empowered to issue show cause notices, while adjudication is to be undertaken by the competent Central Tax officer of the executive Commissionerate having jurisdiction over the noticee, where the case pertains to a single executive Commissionerate. The Court held that the jurisdictional grievance stood redressed and declined to interfere at the show cause notice stage.