When Investigation Is Substantially Completed By Improper Officer, SCN Issued U/S 74 Of CGST Act Is Liable To Be Set Aside: Karnataka HC

The Karnataka High Court ruled that a show-cause notice (SCN) issued by an improper officer under Section 74 of the CGST Act was liable to be set aside. In this case, an investigation into a taxpayer’s GST liabilities had been substantially completed, but the SCN was issued by an officer who lacked the jurisdiction. The court held that only a proper officer could issue such notices, and in this instance, the action taken was invalid. This decision highlights the importance of due process and proper authority in issuing tax-related notices under the GST regime.