M/S. B B R Agency vs. The Deputy Assistant Commissioner (St ) - 1
Held
The Court deemed it appropriate not to assume jurisdiction at the show-cause notice stage. Instead, it directed the petitioner to appear before the 1st respondent (the authority who issued the notice) and submit objections or explanations to the show-cause notice within one week of receiving the order. The 1st respondent is then to consider the petitioner's submissions, afford a personal hearing, and pass an appropriate order expeditiously, not later than one week after the petitioner submits their explanation. The Court also directed that no confiscation order should be passed until this process is completed. The principle is that statutory remedies available at the initial stage should generally be exhausted before approaching the High Court.
Facts
The petitioner filed a writ petition challenging a show-cause notice issued under Section 130 of the CGST Act/APGST Act, 2017. The notice proposed the confiscation of goods vehicle bearing No. AP 37X 4588 along with 17.820 MTs of Iron Scrap. The petitioner sought intervention from the High Court. The respondents are represented by the Government Pleader for Commercial Tax.
Key Issues
1. Whether the High Court should assume jurisdiction to decide the validity of the show-cause notice at this stage, or if the petitioner should be directed to respond to the notice first. The petitioner sought the High Court's intervention to decide the matter. The respondents, through the Government Pleader, did not explicitly argue on the merits of the show-cause notice but were represented in court.
Sections Cited
Section 130
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SRI JUSTICE V.SRINIVAS
WRIT PETITION No.14813 of 2023
ORDER: (per UDPR, J)
Heard Sri Anasuri Eswar Sai, learned counsel for petitioners and learned Government Pleader for Commercial Tax representing on behalf of the respondents.
As the present writ petition is directed against the show-cause notice issued under Section 130 of CGST Act/APGST Act, 2017, calling for the explanation as to why the subject goods vehicle bearing No.AP 37X 4588 along with 17.820 MTs of Iron Scrap shall not be confiscated, we deem it appropriate to direct the petitioner to appear before the 1st respondent and submit objections/explanation to the show-cause notice instead of assuming jurisdiction by ourselves since the matter is at the stage of show-cause notice.
Accordingly, the petitioner is directed to submit his objections/explanation against the impugned show-cause notice dated 15.06.2023 to the 1st respondent within one week from the
2 date of receipt of copy of this order, in which case, the 1st respondent shall consider the same and after affording an opportunity of personal hearing to the petitioner,
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.