M/S Vastin Infratech Private Limited vs. The Union Of INDIA
Held
The Court acknowledged that a writ petition is generally not maintainable against a show-cause notice. However, it noted the significant inaction on the part of the official respondents. The petitioner had filed a reply to the show-cause notice on February 12, 2024, but the respondents had failed to take any decision on the notice or the reply even by the date of the judgment. Citing the decisions in M/S Kanak Automobiles Pvt. Ltd. Vs. The Union Of India and Union of India and Ors. Vs. M/S Kanak Automobiles Pvt. Ltd., the Court found that the petitioner had made out a case for interference. Consequently, the Court set aside the impugned show-cause notice. The ratio decidendi is that prolonged and unexplained inaction by revenue authorities in adjudicating a show-cause notice, despite a reply being filed by the assessee, can be a ground for the High Court to interfere and quash the notice.
Facts
M/s Vastin Infratech Private Limited (the petitioner) filed a writ petition challenging a Demand-cum-Show Cause Notice No. 1001 dated July 26, 2021, issued by the Deputy Commissioner, CGST and CX, Central Division, Patna (Respondent No. 5). The notice alleged suppression of taxable service and contravention of provisions of the Finance Act, 1994, for the period 2016-17 to June 2017, demanding an amount of Rs. 10,08,189/-. The petitioner sought to quash this notice and stay its operation. The petitioner filed a reply to the show-cause notice on February 12, 2024. However, the respondents had not taken any decision on the notice or the reply even as of the date of the judgment.
Key Issues
1. Whether the writ petition is maintainable against a show-cause notice, as per the Finance Act, 1994 and CGST Act, 2017? 2. Whether the inaction of the revenue authorities in deciding the show-cause notice and the petitioner's reply warrants interference by the High Court? The petitioner argued that while a writ petition is generally not maintainable against a show-cause notice, the prolonged inaction by the respondents in adjudicating the matter, despite the petitioner filing a reply, justifies interference. The petitioner relied on the decisions of the Co-ordinate Bench in M/S Kanak Automobiles Pvt. Ltd. Vs. The Union Of India and the Hon'ble Supreme Court in Union of India and Ors. Vs. M/S Kanak Automobiles Pvt. Ltd. The revenue or State did not record any specific arguments against the maintainability or the merits of the case, other than the general submission that a writ petition is not maintainable against a show-cause notice.
Sections Cited
Section 73(1), Section 75, Section 78, Section 77(2), Section 77(i)(c)(ii), Section 174(2)(e)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.4037 of 2024 ====================================================== M/s Vastin Infratech Private Limited through its Managing Director Vinod Singh, K-502, White House, Flat No. 17, Hanuman Nagar, Kankarbagh, Patna-800020. ... ... Petitioner/s Versus
The Union Of India Through the Secretary, Ministry of Finance, Govt. of India, New Delhi.
The Secretary, Department of Revenue, Govt. of India, New Delhi.
The Principal Commissioner of Central Goods and Service Tax, New Delhi
The Commissioner of Central Tax, 4th Floor, C.R. Building (ANNEXE), Bir Chand Patel Path, Patna-800001. 5. The Deputy Commissioner, CGST and CX, Central Division, Ground Floor, Chandpura Palace, Bank Road, West Gandhi Maidan, Patna-800001. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Dr. Alok Kumar Sinha, Adv. For the Respondent/s (UOI) : Mr. K.N. Singh, Sr. Adv., A.S.G.I Mr. Raja Prasad, Adv. ====================================================== CORAM: HONOURABLE MR. JUSTICE P. B. BAJ
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