1. Introduction (Para 1–2)

• Case Details: Writ Petition filed by General Motors India Pvt. Ltd. challenging the pre-show cause notice under Section 73(5) of the SGST Act and seeking disposal of their advance ruling application dated 20 December 2023.
• Legal Representation: Senior Advocate Mr. Darius Shroff for the petitioner; Ms. Shrutin Vyas, Addl. GP, for the respondents.

2. Key Issues (Para 3–4)

• Issues:
  • Legitimacy of pre-show cause notice under Rule 142(1-A).
  • Delay in disposal of advance ruling application beyond 90 days, contrary to Section 98(6).
  • Apprehension that pre-show cause notice would prejudice the authority's decision on merits.

3. Statutory Provisions (Para 5–9)

• Section Discussed: Section 98 of the SGST Act:

  • Specifies procedures and timelines for pronouncing advance rulings.
  • Bars the authority from rejecting applications based on subsequent proceedings initiated after the application date.

• Court’s Observations:

  • Subsequent pre-show cause notice (dated 22 October 2024) cannot bar adjudication of the application filed earlier (20 December 2023).
  • Provision mandates disposal within 90 days of the application.

4. Assurance from Respondents (Para 6)

• Statement by Respondents: Respondent No.3 assured that the application would be decided on merits within three months.

5. Precedent Analysis (Para 10–12)

• Precedents Cited:

  • DRI vs. Spraytec India Ltd. (2023)
  • Srico Projects Pvt. Ltd. vs. Telangana State AAR (2022)

• Legal Interpretation: Inquiry or investigation initiated after filing an advance ruling application does not constitute "pending proceedings" under Section 98(2).

6. Court Directions (Para 13–14)

• Rulings:
  • Respondent No.3 directed to decide the application within three months.
  • Pre-show cause notice proceedings allowed to continue but without passing final orders until the advance ruling is issued.

7. Observations on Judicial Restraint (Para 15–16)

• Court Criticism: Increasing tendency to approach courts prematurely without exhausting statutory remedies.

8. Final Order (Para 17–18)

• Petition disposed of with directions to dispose of the advance ruling application on merits. Interim orders, if any, stand vacated.

Legal Provisions and Ratio Decidendi

Acts and Sections Discussed:

• State Goods and Services Tax Act (SGST Act), 2017
  • Section 73(5): Pre-show cause notice.
  • Section 98: Procedure for advance ruling applications.

Ratio Decidendi:
An advance ruling authority cannot refuse to adjudicate an application on merits based on subsequent proceedings initiated after the application date. Statutory provisions requiring timely pronouncement (90 days under Section 98(6)) must be adhered to, ensuring no undue delay or prejudice to applicants.

Subjects:

Writ Petition addressing delay in advance ruling application disposal under the SGST Act, questioning the validity of pre-show cause notice, and clarifying procedural compliance under Section 98.

#GST #AdvanceRuling #PreShowCauseNotice #StatutoryTimelines #JudicialReview