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Legality and validity of Show cause notice u/s 122 read with rule 142(1)(a).

Section 122 of the CGST Act, 2017— Show Cause Notice --- Validity of Rule 142-– The writ applicant challenged the legality and validity of the show cause notice dated 30th November 2019 issued by the respondent under Section 122(1) of the Act, 2017 calling upon the applicant to show cause why an amount of Rs. 6,87,68,821/¬ should not be recovered for the alleged contravention of the provisions of the Act and the Rules. The show cause notice of department is that the writ applicant is involved in bogus billing transactions without any physical movement of the goods. The applicant prayed for (a) quash and set aside the show cause notice in Form GST DRC-01 (b) declare the Rule 142(1)(a), being ultra vires to the Act and violative of Articles 14 and 19 (1) (g) of the Constitution of India,(c) Proceeding and Adjudication of impugned show cause notice to be stayed.
Held that:- The Hon’ble High Court held that Rule 142 is valid and is no manner conflict with any of the provisions of the Act, therefore, the challenge to the legality and validity of the show cause fails, and accordingly, rejected the writ application.—Mahavir Enterprise Vs Assistant Commissioner of State Tax [2020] 25 TAXLOK.COM 068 (Gujarat)