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GST - Proceedings against non-existent entity after merger, Applicability of Section 87 of the CGST Act, 2017 — Petitioner, a company that had merged with another entity pursuant to a court-approved scheme of amalgamation, challenges an order-in-original confirming GST demand issued in the name of the transferor company which had ceased to exist following the merger - Respondent-Authorities initiated proceedings by issuing show cause notice against the non-existent transferor entity despite being informed of the merger - Whether a show cause notice and consequent order issued against a non-existent amalgamating company, which had ceased to exist upon merger pursuant to a court-approved scheme of amalgamation, is sustainable in law – HELD - Any show cause notice issued to an amalgamating company after it has ceased to exist pursuant to its merger based on the scheme of amalgamation would be without jurisdiction. If proceedings are initiated against a non-existing company despite the assessing authority having knowledge of the amalgamation, such proceedings are void ab initio - The Section 87 of the CGST Act applies only to the intervening period from the date on which the merger order takes effect till the date of the order, and in no way authorizes the Department to issue show cause notice on a non-existent entity post-merger or amalgamation. Post-merger, the merged entity has no legal status and therefore no proceedings can be initiated against it – The show cause notice issued to an amalgamating company after the same had ceased to exist pursuant to its merger is without jurisdiction. Therefore, any proceeding initiated thereunder, is null and void. However, this order would not come in the way of the Authorities from initiating any proceeding, in accordance with law, for recovery of any unpaid GST dues, along with interest and penalty from the Writ Petitioner, if the same is otherwise permissible under the law - The impugned Order-in-Original is set aside and the writ petition is allowed
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