M/S Shree Behari Ji Trading Co. vs. Union Of INDIA And Ors

Held

The Court noted that the petitioner's counsel submitted that the grievance regarding the blocking of ITC vide the order dated February 8, 2021, had been redressed by the department. Regarding the challenge to the show-cause notices, the petitioner's counsel conceded that the challenge would not be maintainable at this stage under Article 226 of the Constitution of India. Consequently, the petitioner did not press the petition concerning these notices. As for the challenge to the vires of the specified provisions of the CGST Act, the petitioner's counsel prayed for withdrawal of the writ petition to enable the client to file a fresh petition with better particulars. The Court allowed this prayer for withdrawal.

Facts

The petitioner, M/s Shree Behar Ji Trading Co., a proprietorship concern engaged in trading, challenged two show-cause notices dated March 12, 2021, and March 15, 2021, issued by the Sale Tax Office, Ward No.3, Mandi Gobindgarh, under Section 74 of the CGST Act, 2017, for alleged tax evasion during the financial years 2017-18 and 2018-19. The petitioner also challenged an order dated February 8, 2021, which blocked Input Tax Credit (ITC) amounting to Rs. 5,93,081/- under Rule 86A of the CGST Act, 2017. Furthermore, the petitioner sought to declare Section 16(2)(c), the second proviso to Section 16(2)(d), and Section 43A(6) of the CGST Act, 2017, as ultra vires.

Key Issues

1. Whether the challenge to the show-cause notices dated March 12, 2021, and March 15, 2021, issued under Section 74 of the CGST Act, 2017, is maintainable at this stage under Article 226 of the Constitution of India? The petitioner argued that the challenge to the notices would not be maintainable. The respondents' arguments are not recorded. 2. Whether Section 16(2)(c), the second proviso to Section 16(2)(d), and Section 43A(6) of the Central Goods and Services Tax Act, 2017, are ultra vires, arbitrary, unreasonable, and in violation of Articles 14 and 19(1)(g) of the Constitution of India? The petitioner sought to withdraw the petition to file a fresh one with better particulars regarding this challenge. The respondents' arguments are not recorded.