Makemytrip (INDIA) Private Limited vs. State Of Rajasthan

Held

The Court held that the writ petition was not maintainable at the show cause notice stage. The Court reasoned that the petitioner's claim that the show cause notice was issued without jurisdiction was not prima facie established, particularly in light of the averments in the notice that the petitioner's office was situated in Rajasthan and services were provided from there, indicating disputed questions of fact. The Court relied on the Supreme Court's decision in Union of India & Ors. vs. Coastal Container Transporters Association & Ors., which emphasized that writ petitions should not be entertained at the show cause notice stage when alternative remedies are available and there is no clear lack of jurisdiction or violation of natural justice. The Court found no ground for interference and dismissed the petition, while allowing the petitioner to raise all available pleas before the competent authority in response to the show cause notice.

Facts

The petitioner, Makemytrip (India) Private Limited, filed a writ petition before the Rajasthan High Court challenging a show cause notice dated November 26, 2020, issued by the Assistant Commissioner of State Tax, Anti-Evasion, Circle-III, Jaipur. The petitioner contended that the show cause notice was issued without jurisdiction. The respondents argued that the writ petition was not maintainable as the petitioner could raise all necessary pleas before the competent authority. They cited the Supreme Court's decision in Union of India & Ors. vs. Coastal Container Transporters Association & Ors., which set aside a Gujarat High Court order that had entertained a writ petition at the show cause notice stage.

Key Issues

1. Whether the writ petition is maintainable at the stage of a show cause notice, considering the availability of alternative remedies under the statute. 2. Whether the show cause notice dated November 26, 2020, issued by the Assistant Commissioner of State Tax, Anti-Evasion, Circle-III, Jaipur, was without jurisdiction. Petitioner's arguments: The petitioner argued that the show cause notice was issued without jurisdiction, making the writ petition maintainable. The petitioner also asserted that no services were being provided from the State of Rajasthan, contradicting the averments in the show cause notice, thus raising disputed questions of fact. Respondents' arguments: The respondents contended that the writ petition was not maintainable because the petitioner could raise all pleas before the competent authority. They relied on the Supreme Court's decision in Union of India & Ors. vs. Coastal Container Transporters Association & Ors., which held that writ petitions should not be entertained at the show cause notice stage unless there is a lack of jurisdiction or violation of natural justice, especially when alternative remedies are available.