Sri Kalyana Chakravarthi Memorial Educational Trust vs. The State Of Andhra Pradesh
Held
The High Court held that the scope for interference with a show-cause notice under Article 226 of the Constitution is limited to cases of lack of jurisdiction or patent non-application of mind. The Court found that the petitioner's counsel did not argue that the Joint Commissioner lacked jurisdiction. While the petitioner argued non-application of mind based on a prior CESTAT order, the Court noted that the current notices were issued under the GST regime, and the principles applicable might differ from the previous service tax regime. Therefore, the mere failure of the authority to refer to the adjudication under the earlier regime did not, by itself, indicate a pre-determined mind or non-application of mind. The Court opined that it was for the petitioner to appear before the authority and demonstrate the validity of its stand. Consequently, the Court found no grounds to entertain the writ petition at the stage of show-cause notices. The petitioner was granted liberty to respond to the notices within two weeks and avail a personal hearing. The Joint Commissioner was directed to take an appropriate decision thereafter. The writ petition was dismissed subject to these observations and liberty.
Facts
The petitioner, an Educational Trust, filed a writ petition before the High Court seeking to quash show-cause notices issued by the Joint Commissioner (Service Tax), Vijayawada-2 Division. The notices, dated June 22, 2018, were issued under the CGST Act, 2017, and the APGST Act, 2017. The petitioner contended that the notices demonstrated a total non-application of mind by the issuing authority. They argued that the issue raised in the show-cause notices was already settled by a final adjudication order dated April 3, 2018, passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in a matter concerning the service tax regime under the Finance Act, 1994. The petitioner claimed this prior adjudication was brought to the Joint Commissioner's notice but was ignored.
Key Issues
1. Whether the High Court should entertain a writ petition challenging show-cause notices issued under the CGST Act, 2017, and APGST Act, 2017, on the ground of alleged non-application of mind by the issuing authority, when the authority has not yet made a final decision. Petitioner's Arguments: - The show-cause notices demonstrate a total non-application of mind by the Joint Commissioner (ST). - The issue raised in the impugned notices is already settled by the CESTAT's order dated April 3, 2018, in Appeal No.ST/21253/2014 and batch, pertaining to Sri Chaitanya Educational Committee under the previous service tax regime. - The Joint Commissioner (ST) ignored this prior adjudication despite it being brought to his notice. Revenue's Arguments: - The judgment records no specific arguments made by the revenue or State.
Sections Cited
CGST Act 2017, APGST Act 2017
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HON’BLE SRI JUSTICE SANJAY KUMAR AND HON’BLE SRI JUSTICE T.AMARNATH GOUD
WRIT PETITION No.26993 of 2018
ORDER: (Per Hon’ble Sri Justice Sanjay Kumar)
The prayer of the petitioner Educational Trust reads as under: “For the reasons stated in the accompanying affidavit, the petitioner prays that the Hon’ble Court may pleased to issue a writ, order or direction more particularly one in the nature of writ of Certiorari, by calling for the records relating to the 2nd respondent’s notices in Rc.No.100/2017/A6, dt.22.06.2018 in FORM GST DRC-01 (CGST Act 2017) and in FORM GST DRC-01 (APGST Act 2017) and quash the same and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.”
Perusal of the impugned notices dated 22.06.2018 reflects that they are in the nature of show-cause notices. The petitioner Educational Trust was called upon to produce evidence in support of its stand and avail a personal hearing through an authorized representative or in person. Scope for interference with a show-cause notice under Article 226 of the Constitution is limited, viz., lack of jurisdiction of the authority who
The judgment continues below.
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