Is Pre-Consultation Before GST SCN Mandatory Or Discretionary? Delhi HC Grants Interim Relief To Aadhar India

The Delhi High Court granted interim relief to Aadhar India in a case where the tax department issued a GST Show Cause Notice (SCN) without holding a “pre-consultation” under Rule 142(1A). The Court found that such pre-consultation is discretionary, not mandatory, and directed that any final order in the SCN proceedings should not be acted upon until further orders. This judgment impacts departmental procedure for issue of SCNs, reinforcing taxpayers’ right to procedural safeguards. (Live Law)