Section 73/74 of the CGST Act, 2017 --- Show Cause Notice – Pre Show Cause Notice Consultation - The petitioner challenged the impugned SCN dated 23rd April, 2021 on the ground that the same was issued without issuing pre-show-cause notice consultation as per Circular No.1076/02/2020 CX dated 19th November, 2020. The counsel for the respondent contended that there is subsequent Circular issued by the Board dated 11th November, 2021 according to which pre-show-cause notice consultation is not mandatory. The court observed that though the said pre-show-cause notice consultation to the noticee is not mandatory but it does not wholly exclude issuance of notice of pre-show-cause notice consultation, which means at least it is directory and discretionary and discretion has to be exercised by the authority in a judicious and reasonable manner. Further the aforesaid Circular nowhere says that it is retrospective in nature. It is well settled principle of law that if any person who is enjoying any benefit under any Statute/Circular/Notification it cannot be taken away retrospectively unless the said Statute/Circular/Notification expressly specifies that the same is retrospective in nature. The matter requires hearing since questions of law are involved in the matter.

Held that:- The Hon’ble High Court directed the Respondents to file affidavit-in-opposition within three weeks. List this matter for final hearing after six weeks. The respondents concerned shall not proceed with the impugned show-cause-notice dated 23rd April, 2021 till the disposal of the writ petition.