Chenduluru Satish vs. The State Of Andhra Pradesh
Held
The Court declined to entertain the writ petition for the prayers made, observing that parallel proceedings should not be run. The Court noted the admitted fact that the petitioner had filed a reply to the show-cause notice, but the matter was still pending before Respondent No.3. The Court found that the interest of justice would be met by directing the competent authority to decide the pending matter. Therefore, the Court directed Respondent No.3/competent authority to take an appropriate decision in accordance with law, after considering the petitioner's reply, within a period of six weeks from the date of receipt of a copy of the order. The petitioner was directed to produce a copy of the order and their reply before the authority. No issue was expressly left undecided.
Facts
The petitioner, engaged in civil works contracts with Municipal Corporation (Respondent No.4), filed GSTR 3B returns based on TDS deductions by the Corporation. Respondent No.3, the Assistant Commissioner (ST), issued a show-cause notice on December 30, 2021, for the years 2017-2018 and 2018-2019, proposing levy of tax, interest, and penalty under Section 74 of the CGST Act. The petitioner submitted a reply on February 1, 2022, but no decision had been taken by Respondent No.3. The petitioner filed a writ petition seeking to declare the show-cause notice illegal and arbitrary and to direct Respondent No.3 not to take any action.
Key Issues
1. Whether the action of Respondent No.3 in issuing a show-cause notice under Section 74 of the CGST Act, for the tax periods 2017-2018 and 2018-2019, is illegal, arbitrary, and violative of the principles of natural justice and Article 14 of the Constitution of India, given that the petitioner had filed a reply but no decision was taken. Petitioner's contentions: The petitioner argued that the show-cause notice was illegal and arbitrary, violating principles of natural justice and Article 14. The delay in decision-making after filing a reply was highlighted as a procedural irregularity. Revenue's contentions: The Government Pleader for the respondents submitted that once a show-cause notice was issued and a reply filed, the authority would pass appropriate orders.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE RAVI NATH TILHARI
AND
HON’BLE SRI JUSTICE A.V.RAVINDRA BABU
WRIT PETITION No.29831 OF 2023
ORDER:- (per Hon’ble Sri Justice Ravi Nath Tilhari)
Heard Sri V.V.S.C.Muralidhar Rao, learned counsel for the petitioner and Sri Shreyas Reddy, learned Government Pleader appearing for respondent Nos.1 to 3. 2. This writ petition under Article 226 of Constitution of India has been filed for the following relief: “pleased to issue a Writ order or direction more particularly one in the nature of a Writ of Mandamus declaring the action of the Respondents more particularly 3rd respondent in issuing Show cause Notice in GST No 37AGSPC6558M3ZK dated 30.12.2021 for the years of 2017-2018 & 2018-2019 allegedly exercising the power U/Sec 74 of the CGST Act as illegal arbitrary, violative of Principles of natural justice and violative of Art. 14 of the Constitution of India and consequently direct the 3rd respondent not to take any action against the petitioner and pass”
Learned counsel for the petitioner submits that the petitioner executed various civil works with the respondent No.4 – Municipal Corporation on contract basis. GST
The judgment continues below.
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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.