Section 74 of the CGST Act, 2017 – Show Cause Notice - The petitioner challenged the order dated 11.03.2022, passed under Section 74 of the Act, passed by the officer who carried out the investigation and search and seizure at the petitioner’s premises. The court observed that there would be a likelihood of bias, if the person, who carried out the search and seizure operation, is also empowered to conduct the adjudication proceedings. The court issued Notice and stayed the operation of the impugned order dated 11.03.2022. The respondent counsel submitted that the respondent would like to revisit its position and submitted a copy of the Circular dated 20.09.2022, regarding Modification of Guidelines for Tax Authorities for Inspection, Search and Seizure dated 01.12.2020. The court observed that the respondent will have to commence de novo proceedings, bearing in mind the modification Guidelines given in the aforementioned Circular i.e., the Circular dated 20.09.2022.

Held that:- The Hon’ble High Court set aside the impugned order dated 11.03.2022 and directed that a fresh show cause notice will have to be issued, keeping in mind the aforementioned Circular dated 20.09.2022.