Section 74 of the CGST Act, 2017— Show Cause Notice -– The petitioner sought for quashing the SCN dated 30.11.2022 issued under section 74 of the Act, on the ground that the same is without jurisdiction, arbitrary and illegal. The petitioner is engaged in the business of transmission/distribution of electricity in the State of Gujarat, Maharashtra and Uttar Pradesh. The petitioner received a notice on 13.12.2021 under section 74 of the Act, wherein it was alleged that the petitioner was liable to pay tax on reverse charge basis, since road restoration work by the AMC was not a part of its sovereign function. The court observed that mere ground of alternative remedy being available will not be the reason for this Court to not entertain this petition. The petitioner has pressed for interim relief that proceedings pursuant to the impugned SCN be stayed. No reply has been given to the final show cause notice, The investigating wing is different than the one which has presently issued the notice.

Held that:- The Hon’ble High Court not granted any kind of stay at this stage and directed that if there is any adjudication, which may affect the right of the petitioner, it may always approach this Court for this purpose.