Demand Notice - The Legal Chamber

The Supreme Court held that the issuance of a summons under Section 70 of the CGST Act does not constitute the "initiation of proceedings" under Section 6(2)(b). The bar against parallel proceedings is triggered only upon the issuance of a show-cause notice, which formally crystallizes the subject matter and commences adjudication. Facts Of The Case: The petitioner, M/S Armour Security (India) Ltd., a company providing security services, was issued a show-cause notice dated 18.11.2024 by the State GST authority (Respondent No. 2) under Section 73 of the CGST Act. This notice raised a tax demand for the period April 2020-March 2021 on grounds of under-declared tax and excess Input Tax Credit (ITC) claims. Subsequently, on 16.01.2025, the Central GST authority (Respondent No. 1) conducted ...

The Supreme Court dismissed appeals challenging demand notices for depositing 10% of the total bid amount with the District Mineral Foundation (DMF). The Court held that Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, is inapplicable to minor minerals due to Section 14. The State Government is empowered under Section 15A to fix the amount payable to the DMF for minor minerals. The Court found the demand consistent with statutory provisions and the 2017 Rules Facts Of The Case: Chandra Bhan Singh, a successful bidder for mining minor minerals (sand), was allotted a tender. In line with the Policy decision dated April 22, 2017, the Appellant was required to deposit an amount of ₹54,12,960/-, representing 10% of the total bid amount of ₹5,41,29,600/-, to the Dis...

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