M/S Mohan Motors vs. Union Of INDIA

CW/4783/2020HC RajasthanGSTCNR RJHC02024090202020 February 2024Bench: AVNEESH JHINGAN,SHUBHA MEHTA2 pages

AI SummaryRemanded

Facts

The petitioner, M/s Mohan Motors, filed a writ petition before the High Court of Judicature for Rajasthan, Bench at Jaipur. The petition was filed aggrieved by the issuance of a letter dated 21.02.2020 (Annexure-3). Additionally, the petitioner challenged the vires of the provisions of Section 50 of The Central Goods and Services Tax Act, 2017. The respondents, including the Union of India and various GST authorities, were represented. The tax period(s) and the specific amount in dispute were not explicitly stated in the provided text. The procedural history leading to the current stage involved the filing of the writ petition and the subsequent submissions by the respondents.

Held

The Court noted the submission made by the learned counsel for the respondents, based on an intimation dated 28.12.2023, stating that the department was not proceeding in pursuance of Annexure-3 at this stage due to subsequent developments. In light of this statement, the Court found the petition to be infructuous at this stage. The Court did not delve into the merits of the challenge to Annexure-3 or the vires of Section 50 of the CGST Act, 2017, as the immediate cause of action was withdrawn by the revenue. The ratio decidendi is that if the revenue concedes that it is not proceeding with the impugned action, the writ petition challenging that action becomes infructuous. The operative direction was to dispose of the petition as infructuous.

Key Issues

1. Whether the letter dated 21.02.2020 (Annexure-3) issued by the revenue authority is valid and legally tenable? 2. Whether Section 50 of The Central Goods and Services Tax Act, 2017, is ultra vires the Constitution of India? The petitioner argued that the letter dated 21.02.2020 was erroneous and that Section 50 of the CGST Act, 2017, was invalid. The respondents, through their counsel, stated that in view of a subsequent development, the department was not proceeding in pursuance of Annexure-3 at this stage. No specific arguments or reliance on authorities, circulars, or precedents were recorded for the petitioner regarding the challenge to Section 50 of the CGST Act, 2017. The respondents' argument was limited to the intimation regarding Annexure-3.

Sections Cited

Section 50

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:8751-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 4783/2020 M/s Mohan Motors, Alanpur Link Road, Sawai Madhopur Rajasthan-322001 Through Its Proprietor Naresh Nama S/o Radha Mohan Ji Nama ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, Government Of India, New Delhi. 2. The Chairman, Gst Council, Government Of India, New Delhi. 3. The Chief Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur. 4. The Commissioner, State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur. 5. The Assistant Commissioner, Central Goods And Services Tax Division-F, Bharatpur. 6. The Superintendent Of Central Tax, Cgst Range-Xxviii, Sawai Madhopur. ----Respondents For Petitioner(s) : Mr. Pankaj Ghiya For Respondent(s) : Mr. Anand Sharma with Mr. CS Sinha for Mr. R.D. Rastogi, ASG Mr. Rahul Lodha for Mr. Ayush Singh for Mr. Punit Singhvi Mr. Rahul Lodha HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MRS. JUSTICE SHUBHA MEHTA

Order 20/02/2024

This petition was filed aggrieved of issuance of letter dated 21.02.2020 (Annexure-3). The vires of the provisions of Section

[2024:RJ-JP:8751-DB] (2 of 2) [CW-4783/2020] 50 of The Central Goods and Services Tax Act, 2017 were also challenged.

Learned counsel for the respondents on the basis of an intimation dated 28.12.2023 submits that in view of the subsequent development, the department is not proceeding in pursuance of Annexure-3 at this stage.

In view of the statement made, this petition at this stage is disposed of as infructuous. (SHUBHA MEHTA),J (AVNEESH JHINGAN),J Himanshu/Chandan--26

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.