The Hon’ble Bombay High Court in the case of Kanakia Spaces Realty Private Limited v. Union of India & Ors. [Writ Petition No. 2586 of 2026 dated June 24, 2026] set aside the Order-in-Original confirming a GST demand of Rs. 42.65 crores which was passed on the basis of a Show Cause Notice issued under Section 74 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) in the name of a company that had ceased to exist upon its amalgamation, and held that a Show Cause Notice issued to a non-existent entity is without jurisdiction and the entire proceedings initiated thereunder are vitiated and rendered void ab initio. It was further held that Section 87 of the CGST Act operates only for the intervening period from the date on which the amalgamation order takes effect till the date of the order, and in no manner confers authority on the Department to issue a Show Cause Notice on a non-existent entity post merger/amalgamation.
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