The Gujarat High Court directed the tax authorities to complete adjudication proceedings within eight weeks and granted an additional two weeks for compliance, staying coercive measures in the interim. The move underscores judicial emphasis on fair procedure before enforcement.
Gujarat HC Grants Time for GST Adjudication Before Coercive Action
The Gujarat High Court recently intervened in a GST proceedings matter, directing the authorities to complete adjudication within eight weeks and granting the taxpayer an additional two weeks to take corrective steps before any coercive action is initiated. The order came in response to a petition challenging the initiation of coercive recovery measures without allowing for a conclusive adjudication process.
The Court emphasized that assessment and adjudication must precede any enforcement action under the CGST Act, particularly where disputes on tax liability are pending. By mandating a time-bound completion of adjudication, the Court reinforced the principle of natural justice and the statutory requirement of due process in tax administration.
Practitioners should note the importance of seeking interim protection in similar cases where show-cause notices (SCNs) are outstanding. The ruling reinforces that authorities must allow a reasonable opportunity for representation before moving to detention or arrest, particularly in cases involving procedural defaults rather than fraud.
