M/S Sanmati Metals vs. State Of Hp And Others
Held
The Court directed the competent authority to consider the petitioner's objections and supporting documents afresh in response to the show cause notices. The authority is to pass a speaking and reasoned order within six weeks after considering the genuineness of transactions, payment of GST to suppliers, and compliance with statutory obligations.
Facts
The petitioner sought a writ of mandamus to stop GST proceedings and quash notices, arguing that show cause notices were issued without proper procedure and that they had paid tax to sellers and possessed documents for ITC. The petitioner also challenged Section 16(2)(c) of the GST Act, but later withdrew this specific challenge.
Key Issues
Whether the GST authorities followed the correct procedure in issuing show cause notices, and whether the petitioner is entitled to Input Tax Credit despite challenges regarding tax payment by the seller.
Sections Cited
Section 74, Section 16(2)(c)
AI-generated summary — verify with the full judgment below
2026:HHC:15350 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.1793 of 2024 Date of decision: 07.05.2026 M/s Sanmati Metals.
...Petitioner. Versus State of Himachal Pradesh & Ors. …Respondents. Coram Hon’ble Mr. Justice Vivek Singh Thakur, Judge. Hon’ble Mr. Justice Ranjan Sharma, Judge. Whether approved for reporting?1 For the petitioner : Mr. J.S. Bedi, Advocate with Mr. Goverdhan Lal Sharma, Advocate.
For the respondents : Mr. Anup Rattan, Advocate General with Mr. Sushant Keprate, Additional Advocate General.
Vivek Singh Thakur, Judge
Petitioner has approached this Court seeking following main substantial relief(s):- “i. For issuance of a writ in the nature of mandamus directing respondents not to proceed further in pursuance to notice, summons issued by Respondent no.3 along with intimation of tax ascertained payable under Section 74(5) in form DRC-01 and DRC-01A for the period 2022-23, as the show cause notice was issued without issuing ASMT-10 (Annexure P-2) beside this show cause notice was issued without appreciating the factual and legal position as petitio
The judgment continues below.
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