L S Power Control Private Limited vs. Union Of INDIA & Anr.

Facts

The petitioner, L S Power Control Private Limited, filed a writ petition under Article 226 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973. The petition sought a direction to respondent no. 2 (likely a GST authority) to refrain from taking coercive action against the petitioner concerning a summons dated April 3, 2024. The petitioner specifically requested that no coercive action be taken without first issuing an appropriate Show Cause Notice under Section 73 or 74 of the Central Goods and Services Tax Act, 2017. The petitioner stated that documents had already been provided in response to the summons and undertook to cooperate with the inquiry.

Held

The Court noted the submission made by the learned counsel for respondent no. 2 that no coercive action is contemplated against the petitioner at present. The counsel further assured that if any action is taken in the future, it will be in accordance with the law. In light of this statement, the Court found no further directions to be necessary in the present petition. The petition was disposed of based on the assurance given by the respondent.

Key Issues

1. Whether the respondent no. 2 can take coercive action against the petitioner without issuing a Show Cause Notice under Section 73 or 74 of the Central Goods and Services Tax Act, 2017? (Question of law) Petitioner's contention: The petitioner argued that any coercive action should only be taken after the issuance of a Show Cause Notice under the relevant sections of the CGST Act, 2017. They submitted that documents had been provided and pledged cooperation. Respondent's contention: The counsel for respondent no. 2 stated that the petitioner's apprehension was unfounded, as no coercive action was currently contemplated. They assured that if any action were to be taken, it would be in accordance with the law.