Chhattisgarh HC says Writ Petitions Against Show Cause Notices Ordinarily Not Maintainable

The Chhattisgarh High Court dismissed three writ petitions challenging a common GST show cause notice issued under Section 74, read with the CGST Act, proposing penalties under Sections 122(1A), 122(3) and 125. The Court held that writ petitions against show cause notices are ordinarily not maintainable where the noticees have not submitted their replies, adjudication has not taken place and the statutory appellate remedy under Section 107 remains available. Relying on the Supreme Court's decision in Assistant Commissioner of State Tax v Commercial Steel Limited, the Court reiterated the limited circumstances in which writ jurisdiction may be exercised despite an alternative remedy. It nevertheless directed the Department to provide a proper opportunity of hearing before determining liability.