Jammu And Kashmir Bank LTD Th Sumeet Kumar vs. Union Of INDIA Th Secretary Ministry Of Finance New Delhi And Others
Held
The High Court declined to entertain the writ petition at this stage. The Court held that the petitioner-Bank is well within its rights to file a reply to the show-cause notice and, in doing so, is free to raise objections concerning the jurisdiction of the Commissioner and the applicability of the CGST Act, 2017, J&K GST Act, 2017, or IGST Act, 2017. The Court directed that the reply to the show-cause notice be filed within two weeks. The Commissioner Central Goods and Services Tax, Jammu, is mandated to consider the petitioner's reply on its merits and in accordance with the law, and take an appropriate decision within four weeks from the receipt of the notice. The Court explicitly stated that all contentions raised by the petitioner, including those relating to the applicability of the Acts and the authority's jurisdiction, shall be specifically dealt with in the final decision. No coercive action shall be initiated against the petitioner until a decision is taken.
Facts
The petitioner, Jammu and Kashmir Bank Ltd., filed a writ petition challenging a show-cause notice dated 30.11.2024 issued by the Commissioner Central Goods and Services Tax, Jammu. The notice called upon the bank to explain why action should not be taken against it under the Jammu and Kashmir GST Act, 2017, or related rules or other applicable laws. The notice indicated the intention to invoke provisions of the IGST Act, 2017, CGST Act, 2017, and J&K GST Act, 2017. The petitioner sought to challenge the jurisdiction of the Commissioner and the applicability of the GST Acts to the transactions in question.
Key Issues
1. Whether the Commissioner Central Goods and Services Tax, Jammu has the jurisdiction to issue the show-cause notice dated 30.11.2024 to the petitioner-Bank under the provisions of the Jammu and Kashmir GST Act, 2017, CGST Act, 2017, and IGST Act, 2017? Petitioner's Arguments: The petitioner argued that the transaction in question is not covered under the CGST Act, 2017, J&K GST Act, 2017, or IGST Act, 2017, and therefore, the Commissioner lacks the jurisdiction to issue the show-cause notice. The petitioner intended to raise objections regarding jurisdiction while replying to the notice. Revenue's Arguments: The judgment does not record any specific arguments made by the revenue or the respondents. However, the issuance of the show-cause notice itself implies the revenue's contention that the GST laws are applicable and the Commissioner has jurisdiction.
Sections Cited
CGST Act, 2017, J&K GST Act, 2017, IGST Act, 2017
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER 03.03.2025
Impugned in this petition filed by the petitioner-Bank is a show-cause notice issued by the Commissioner Central Goods and Services Tax, Jammu dated 30.11.2024 whereby, the petitioner-Bank has been called upon to show cause as to why an action may not be taken against it under the provision of Jammu and Kashmir GST Act, 2017 or the rules made thereunder or any other law for the time being in force.
From a plain reading of the show-cause notice, we find that the Commissioner concerned has given elaborate reasons for invoking provisions of the IGST Act, 2017, CGST Act, 2017 and J&K GST Act, 2017 to initiate an action against the petitioner-Bank. The petitioner-Bank is well within its right to reply to the
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