Section 74 of the CGST Act, 2017 — Show Cause Notice — The petitioner challenged SCN dated 25.5.2021 issued under Section 74 of the Act. The counsel for the petitioner raised an issue with regard to the jurisdiction of the respondent no. 3 to proceed under Section 74, on the basis of a survey/SIB survey dated 13.9.2019. The counsel of the petitioner submitted that two proceedings i.e  blocking ITC under Rule 86-A and confiscation of seized goods under Section 130 were initiated. Against both the orders, the petitioner had filed appeals, which were allowed by the appellate authority. All the issues, arised during the assessment proceedings under Section 74 leading to the demand have already been dealt with by the appellate authority. The counsel for the department submitted s that the Revenue is contemplating to challenge the Appellate order. The court observed that all issues raised are still open to agitate before the Assessing Officer.

Held that:- The Hon’ble High Court directed that the issue with regard to the jurisdiction of the Assessing Officer to proceed under Section 74, shall be raised before the Assessing Officer in reply to the show cause notice. The Assessing Officer shall be under obligation to deal with all the contentions of the petitioner made in the reply.