GST Department Not Empowered To Issue Notices In Name Of Non-Existent Entity Post Amalgamation: Delhi High Court

The Delhi High Court ruled that Section 160 of the CGST Act, not Section 87, empowers authorities to issue notices to non-existent entities post-amalgamation. The case involved a tax department issuing notices in the name of an amalgamated entity, leading to procedural objections by the taxpayer. The court clarified that notices must be addressed to the surviving entity post-amalgamation to ensure procedural compliance. Legal analysts believe this judgment underscores the importance of adhering to procedural rules and respecting the legal status of amalgamated entities. It serves as a reminder for tax authorities to update records and ensure accuracy in issuing notices to prevent procedural lapses. The ruling also highlights the judiciary's role in safeguarding taxpayer rights and promoting compliance with the procedural framework under the GST Act.