Bombay High Court Mandates Minimum Three-Month Interval Between GST Show Cause Notice and Adjudication Order
In a significant development for GST jurisprudence, the Hon’ble Bombay High Court has reinforced the principles of natural justice and procedural compliance in the adjudication process. The Court, in the matter of A.M. Marketplace Pvt. Ltd. v. The Union of India & Ors., ruled that the statutory time gap between the issuance of a Show Cause Notice (SCN) and the passing of a final order is mandatory, not optional.
The Division Bench clarified that the Revenue authorities cannot compress the adjudication timeline in a manner that deprives the assessee of their statutory rights, including the opportunity for a personal hearing and the provision for adjournments.
Factual Matrix of the Dispute
The writ petition was filed by the assessee, A.M. Marketplace Pvt. Ltd., challenging the validity of an adjudication order passed by the GST authorities. The primary contention revolved around the haste with which the proceedings were concluded under Section 73 of the CGST Act, 2017.
The timeline of the proceedings was as follows:
- Issuance of SCN: May 15, 2024
- Passing of Final Order: July 9, 2024