Section 122 of the CGST Act, 2017— Show Cause Notice for Penalty —— The petitioner challenged SCN dated 8th February, 2022 issued by the DGGI, invoking inter alia Section 122(1A). The SCN has been issued to Petitioners on the basis that they were associated in various capacities of M/s. Bhushan Power & Steel Limited (BPSL) and for transactions relating to the period from July 2017 to March 2018. The court observed that the proceedings initiated against the Petitioners were without jurisdiction as BPSL was itself before the NCLT. He relied on the decision of the Supreme Court of India in Ghanashyam Mishra v. Edelweiss Asset Reconstruction Company Ltd. The court observed that since the adjudication proceedings are yet to commence, the better course would be to permit the Petitioners to raise all the pleas that they have urged in the present petitions in their reply to the impugned SCN.

Held that:- The Hon’ble High Court directed the Petitioners to file their replies to the impugned SCN positively on or before 1st March, 2023. The adjudicating authority will take into account all such pleas and deal with them in the adjudication order to be passed after giving the Petitioners an opportunity of hearing.