Fastway Transmissions PVT LTD & Ors. vs. Union Of INDIA & Ors.
Facts
The petitioners, Fastway Transmissions Pvt Ltd & Ors., filed a writ petition before the Delhi High Court challenging an order-in-original dated 29.04.2022, which they contended was contrary to GST Circular No.169/01/2022. They also challenged a show cause notice dated 09.01.2018, arguing it was barred by limitation and ultra vires to the Finance Act, 1994. Notably, the petitioners had previously filed a writ petition before the Punjab & Haryana High Court challenging the same show cause notice. That petition was disposed of on 20.07.2020, with directions for the adjudicating authority to decide the matter and for the petitioners to appear before it. The Punjab & Haryana High Court also indicated that challenges to notifications, rules, and circulars would be considered after adjudication.
Held
The Delhi High Court held that the present writ petition was not maintainable. The Court observed that the petitioners had previously filed a writ petition before the Punjab & Haryana High Court concerning the same show cause notice, and that petition had been disposed of with specific directions for adjudication. The Punjab & Haryana High Court had also clarified that challenges to notifications, rules, and circulars would be considered after the adjudication process. The Delhi High Court found that the petitioners were now approaching this Court with reliefs similar to those sought before the Punjab & Haryana High Court, which appeared to be a case of forum shopping. Therefore, the Court was not persuaded to entertain the petition. The Court clarified that this decision would not preclude the petitioners from availing other available remedies in accordance with the law.
Key Issues
1. Whether the present writ petition is maintainable before this Court, given that a similar petition was filed and disposed of by the Punjab & Haryana High Court, raising concerns of forum shopping? Petitioner's Contention: The petitioners sought to impugn the order-in-original and the show cause notice on grounds of being contrary to a GST circular and barred by limitation, respectively. They appear to have approached the Delhi High Court after the Punjab & Haryana High Court's order, which directed adjudication. Revenue's Contention: The respondents argued that the petitioners' approach to the Delhi High Court with similar reliefs, after the Punjab & Haryana High Court had already dealt with the matter and directed adjudication, constituted forum shopping. They contended that the petitioners should have pursued remedies available after the adjudication process.
Sections Cited
Finance Act, 1994
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Cause title — parties, addresses and appearances
O R D E R % 04.05.2023
The petitioners have filed the present petition impugning an order-in-original dated 29.04.2022 as being contrary to Circular No.169/01/2022 – GST dated 12.03.2022. The petitioners also impugn the show cause notice dated 09.01.2018 issued by respondent no.3 on the ground that the same is barred by limitation and ultra vires to the provisions of the Finance Act, 1994. 2. It is pointed out that the petitioners had filed a writ petition before the Punjab & Haryana High Court, being W.P.(C) No.9160/2020 impugning the show cause notice dated 09.01.2018. The said writ petition was disposed of by an order dated 20.07.2020, which reads as under: This is a digitally signed order. The authenticity of the order can be re-veri
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