M/s KE AGRO PRODUCTS PVT. LTD. v. THE JOINT COMMISSIONER OF STATE TAX & ORS.

Introduction

This judgment reiterates that the High Court will ordinarily not interfere with adjudication proceedings at the show cause notice stage, particularly where the proceedings have already commenced, the taxpayer has filed a reply, and adequate opportunity of hearing and cross-examination has been granted. The Kerala High Court held that mere apprehension that a composite adjudication order may be passed does not justify interference under Article 226, especially when statutory remedies remain available against the final adjudication order.

Background of the Case

The petitioner was issued a composite show cause notice under Section 74 of the CGST Act covering the financial years 2017-18 to 2022-23.