Section 74 of the CGST Act, 2017 – Demand Notice-- Moratorium declared by the National Company Law Tribunal (NCLT) —- The Petitioner sought quashing the Audit Report dated 22.06.2021 and SCN dated 15.11.2021, issued under Section 74. The petitioner intimated the respondent that no proceedings against him can be continued in view of the moratorium declared by the National Company Law Tribunal (NCLT) Bengaluru Bench. The counsel for the petitioner submitted that having regard to the specific words 'proceedings' employed in Section 14 of the IBC in relation to any court, tribunal, arbitration panel or other authority, the impugned proceedings initiated against the petitioner by the respondent - department are also to be suspended/stayed/kept in abeyance till completion of the Corporate Insolvency Resolution Process (CIRP) and lifting of the moratorium. The court observed that the decisions of the Apex Court, Delhi High Court and Madras High Court, albeit under the Income Tax Act and the Negotiable Instruments Act are clearly applicable to the instant proceedings and under the GST Act also. In view of the specific embargo/bar contained in Section 14 of the IBC, the instant proceedings initiated by the respondent pursuant to the impugned notices deserve to be stayed/suspended/kept in abeyance till conclusion of the proceedings before the NCLT and appeal(s) to be filed, if any, and only after lifting of the moratorium and completion of the corporation insolvency resolution process.

Held that:- The Hon’ble High Court stayed all proceedings pursuant to the impugned notices, intimations, orders, etc. issued/passed by the respondent against the petitioner till disposal of the proceedings before the NCLT, Bengaluru.