M/S Sudarshan Facilities PVT. LTD. vs. Union Of INDIA & Ors.

W.P.(C)/17787/2024HC DelhiGSTCNR DLHC01097614202408 January 2025Bench: HON'BLE MR. JUSTICE YASHWANT VARMA2 pages

For Petitioner: Mr. Bharat Raichandani and Mr. Deepak Kumar Khokhar, AdvsFor Respondent: Mr. Neeraj, SPC with Mr. Vedansh Anand, GP and Mr. Sachin Saraswat, Adv. Mr. R. Ramachandran, SSC with Mr. Prateek Dhir, Adv

AI SummaryDismissed

Facts

The petitioner, M/s Sudarshan Facilities Pvt. Ltd., filed a writ petition before the Delhi High Court challenging a Show Cause Notice (SCN) issued on April 6, 2023. The respondents are the Union of India and other authorities. The petitioner sought to impugn the SCN, which was issued by the revenue authorities. The petition was filed significantly after the issuance of the SCN. The Court noted that no jurisdictional question was raised by the petitioner. The Court also directed that any application made by the petitioner during the pendency of the SCN proceedings for documents, including those under Section 67 of the CGST Act, 2017, should be examined by the competent authority.

Held

The Court dismissed the writ petition on the grounds of evident laches. The Court found no justification to entertain the challenge, especially since no jurisdictional question was raised. The dismissal means that the SCN proceedings will continue before the revenue authorities. The Court explicitly stated that all rights and contentions of the respective parties are left open to be addressed in the SCN proceedings. Furthermore, the Court directed that any application made by the petitioner during the pendency of these proceedings, seeking documents related to the initiation of proceedings by the respondents, including those under Section 67 of the CGST Act, 2017, should be examined and disposed of by the competent authority in accordance with the law. The ratio decidendi is that High Courts may decline to entertain writ petitions challenging revenue notices when there is a significant delay and no jurisdictional issue is raised, directing parties to pursue remedies before the original authority.

Key Issues

1. Whether the writ petition challenging the Show Cause Notice (SCN) issued on April 6, 2023, is maintainable in light of evident laches, as per the provisions of the Central Goods and Services Tax Act, 2017? The petitioner argued that the SCN was being challenged. The revenue contended that the petition suffered from evident laches due to the significant delay in filing the challenge after the SCN was issued on April 6, 2023. The revenue also noted that no jurisdictional question was raised by the petitioner. The petitioner did not appear to have made any specific arguments regarding the maintainability of the petition or the merits of the SCN itself, beyond seeking to impugn it.

Sections Cited

Section 67

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17787/2024 & CM APPL. 75729/2024 (Stay) M/S SUDARSHAN FACILITIES PVT. LTD. .....Petitioner Through: Mr. Bharat Raichandani and Mr. Deepak Kumar Khokhar, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Neeraj, SPC with Mr. Vedansh Anand, GP and Mr. Sachin Saraswat, Adv. Mr. R. Ramachandran, SSC with Mr. Prateek Dhir, Adv. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

O R D E R %

08.01.

2025 CM APPL. 75730/2024 (Ex.) Allowed, subject to all just exceptions.

The application is disposed of. W.P.(C) 17787/2024 & CM APPL. 75729/2024 (Stay)

Undisputedly, the Show Cause Notice [“SCN”] which is sought to be impugned before us was issued as far back as on 06 April 2023. 2. In light of the evident laches, we find no justification to entertain the challenge. This more so since no juri ictional question is raised.

Consequently, we dismiss the writ petition leaving all rights and contentions of respective parties open to be addressed in the SCN proceedings. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:24:57

Any application that the petitioner may have chosen to make during the pendency of those proceedings, seeking documents on the basis of which the proceedings were initiated by the respondents, including those referable to Section 67 of the Central Goods and Services Tax Act, 2017, may be examined and disposed of by the competent authority in accordance with law.

YASHWANT VARMA, J.

HARISH VAIDYANATHAN SHANKAR, J.

JANUARY 08, 2025/DR This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:24:57

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