M/S Laxmi Enterprises vs. Union Of INDIA
Held
The Court held that the demand in question is a prima facie impression by the department, and the petitioner has been granted an opportunity to rebut it. Therefore, all issues raised in the writ petition, including the foundation for the best judgment assessment, can be effectively raised before the Assessing Authority. Since the time to respond to the demand-cum-show cause notice has expired, the Court permitted the petitioner to file their reply within four weeks from the date of the order (by August 5, 2019). The petitioner is to appear before the Deputy Commissioner, CGST, Patna, with their response on that date. The Deputy Commissioner is directed to dispose of the matter in accordance with the law after providing an opportunity of hearing to the petitioner. The Court explicitly stated that it had not expressed any opinion on the merits of the case.
Facts
The petitioner, M/s Laxmi Enterprises, is challenging a demand-cum-show cause notice dated April 1, 2019, issued by the Deputy Commissioner, Central GST and Central Excise, Patna. The notice demands Rs. 10,98,436/- from the petitioner, based on a best judgment assessment conducted under Section 72 of the Finance Act, 1994. The petitioner contends that the assessment is flawed. The time granted in the notice to respond has expired. The petitioner has approached the High Court by way of a writ petition seeking to address the issues raised in the notice.
Key Issues
1. Whether the Deputy Commissioner, Central GST and Central Excise, Patna, was justified in initiating a best judgment assessment under Section 72 of the Finance Act, 1994, against the petitioner, M/s Laxmi Enterprises, for the demand of Rs. 10,98,436/-? Petitioner's Contention: The petitioner argues that the best judgment assessment is unfounded and that all issues, including the basis for this assessment, should be considered by the Assessing Authority. They seek an opportunity to present their case. Revenue's Contention: The revenue, represented by the Additional Solicitor General and Standing Counsel, has not explicitly recorded arguments in the judgment regarding the justification of the best judgment assessment. However, their appearance indicates their defense of the notice issued by their subordinate authority.
Sections Cited
Section 72
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.11722 of 2019 ======================================================
M/s Laxmi Enterprises, Colony More, Kankarbagh, Lohia Nagar, Patna, Bihar- 800020 through its Proprietor Manoj Kumar, Son of Shri Ramjee Pandey, Aged about 42 years, Male, Resident of A/58, Housing Colony, Lohiya Nagar, Kankarbagh, Opposite Panch Shiv Mandir, Sampatchak, Lohia Nagar, Patna- 800020. ... ... Petitioner/s Versus
Union of India through the Commissioner of Central GST and Central Excise, Patna- I, 3rd Floor, Kendriya Rajaswa Bhawan (Annexe Building), Bir Chand Patel Path, Patna- 800001. 2. The Deputy Commissioner of Central GST and Central Excise, Patna Central Division, Ground Floor, Chandpura Palace, Opposite Dadi Maa Temple, Bank Road, West Gandhi Maidan, Patna- 800001. 3. The Superintendent, Central GST and Central Excise, Kankarbagh Range, Ground Floor, Chandpura Palace, Opposite Dadi Maa Temple, Bank Road, West Gandhi Maidan, Patna- 800001. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Amit Pandey, Adv. For the Respondent/s : Mr. S.D.Sanjay, A
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