M/s SRI NANJUNDAPPA CONSTRUCTIONS v. UNION OF INDIA & ORS.

Introduction

This judgment clarifies the legal nature of an intimation issued under Section 73(5) of the CGST/KGST Act. The Karnataka High Court held that such an intimation is only a pre-show cause communication intended to provide the taxpayer an opportunity either to voluntarily pay the ascertained tax with interest or to submit objections. Since no show cause notice under Section 73(1) or adjudication order under Section 73(9) had been issued, the writ petition was held to be premature.

Background of the Case

The petitioner challenged an Intimation of Tax Ascertained issued under Section 73(5) of the CGST/KGST Act relating to GST liability on royalty.