Shabbir Abbasali Rangwala vs. Union Of INDIA Through Revenue Secretary Dept. Of Revenue Ministry Of Finance And Ors
Original PDF →Facts
The Petitioner, Shabbir Abbasali Rangwala, filed a writ petition before the Bombay High Court challenging an interest order levied on his gross tax liability for the financial years 2017-18, 2018-19, and 2019-20. The amounts in dispute were Rs. 4,22,948/-, Rs. 13,82,308/-, and Rs. 11,95,870/-, respectively. The Petitioner contended that a recovery notice was issued on February 17, 2020, without providing an opportunity to be heard. The Respondent authorities were Union of India and others, including Respondent No. 5, the authority who passed the interest order, and Respondent No. 2, who issued a circular.
Held
The Court acknowledged that a recalculation would be necessary in the Petitioner's case. Consequently, the Court set aside the order dated February 17, 2020. It was held that it is open for the Respondent to issue a fresh show cause notice to the Petitioner concerning the subject matter of the set-aside order. The Petitioner is at liberty to present all contentions raised in the writ petition before the authority. The Respondent-authority shall then take an appropriate decision in the matter after considering the Petitioner's submissions. The Court did not explicitly decide on the validity of the circular issued by Respondent No. 2, as the matter was disposed of on the procedural ground of opportunity of hearing.
Key Issues
1. Whether the interest order levied on the gross tax liability for the financial years 2017-18, 2018-19, and 2019-20, amounting to Rs. 4,22,948/-, Rs. 13,82,308/-, and Rs. 11,95,870/-, respectively, is valid without providing the Petitioner an opportunity of being heard? 2. Whether the circular issued by Respondent No. 2 vide Circular No. F.NOCBEC-20/16/07/2020-GST dated 10/02/2020 is null and void and contrary to the provisions of the GST Act and Rules, 2017? Petitioner's Contentions: The Petitioner argued that a recovery notice was issued on February 17, 2020, without affording him an opportunity to present his case. He also sought to rely on the principles laid down by the Madras High Court in M/s Refex Industries Limited v. Assistant Commissioner of CGST & Central Excise and requested the withdrawal of the circular issued by Respondent No. 2. Revenue's Contentions: The learned counsel for the Respondent accepted that recalculation would have to be carried out in the case of the Petitioner.
Sections Cited
None explicitly mentioned in the operative part of the judgment, though the context implies provisions related to interest and show cause notices under the GST Act and Rules.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURI ICTION WRIT PETITION
NO. 1388 OF 2021
Shabbir Abbasali Rangwala. ...Petitioner. Versus Union of India and Others. ..Respondents. Mr. Manohar Samal i/b Ratan Samal for the Petitioner. Mr. Dhananjay B. Deshmukh for Respondent No.
Mr. Siddharath Chandrashekhar for Respondent Nos. 1 and 3 to 6. CORAM : NITIN JAMDAR & ABHAY AHUJA, JJ.
DATE : 4 JANUARY 2023. P.C. : Heard learned counsel for the parties. The Petitioner has sought for the following reliefs : “a) This Hon’ble Court may be pleased to issue any Writ, Order or Direction that, this Hon’ble Court may deem fit in the nature and circumstances of the matter directing the Respondent No.5 to delete/set aside the Interest order levied on the gross tax liability amounting to Rs. 4,22,948/-, Rs.13,82,308/and Rs.11,95,870/- for the financial year 2017- 18, 2018-19 and 2019-20 respectively. b) This Hon’ble Court may be pleased to issue any Writ, Order or Direction that, this Hon’ble Court may deem fit in the nature and circumstances of the matter directing the Respondent No. 5 to consider the judgment of Hon’ble Madras High Court in the matter of M/s Refex Industries Limited v. Assistant Commissioner of CGST & Central Excise, Writ Petition Nos. 23360 and 23361 of 2019 dated 06/01/2020 and by applying the said principles laid down by 1 of 2 patilsr SACHIN RAMCHANDRA PATIL RAMCHANDRA PATIL Date: 2023.01.07 14:02:33 +0530
Hon’ble Madras High Court or as may be determined by this Hon’ble Court direct the Respondent No.5 to delete the Interest charged on the gross tax liability. c) This Hon’ble Court may be pleased to issue any Writ, Order or Direction that, this Hon’ble Court may deem fit in the nature and circumstances of the matter directing the Respondent No. 2 to withdraw the circular issued vide Circular No. F.NOCBEC-20/16/07/2020-GST dated 10/02/2020 and this Hon’ble Court may be pleased to declare such circular to be null and void and contrary to the provisions of the GST Act and Rules. 2017.” Learned counsel for the Petitioner submits that without giving an opportunity, straightaway a notice for recovery has been issued on 17 February 2020. Learned counsel for the Respondent also accepts that the recalculation will have to be carried out in the case of the Petitioner.
That being the position, we set aside the order 17 February 2020. It is open to the Respondent to issue show cause notice to the Petitioner in respect of the subject matter of the order dated 17 February 2020 and it is open to the Petitioner to place before the authority the contentions raised in this petition and thereupon the Respondent– authority will take appropriate decision in the matter.
Writ petition is accordingly disposed of in above terms. (ABHAY AHUJA, J.)
(NITIN JAMDAR, J.) 2 of 2 patilsr
Reproduced from the public record of the Bombay High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.