M/S. Victoria Granites vs. The Union Government Of INDIA
Held
The Court noted that the petitioner sought permission to withdraw the writ petition with liberty to file objections to the show cause notice along with supporting material. The respondent revenue authority had stated that no action had been initiated post-issuance of the show cause notice and that it was kept in abeyance due to a pending similar matter in the Supreme Court. Consequently, the Court dismissed the writ petition as withdrawn. The petitioner was granted liberty to file objections to the show cause notice within four weeks, and the respondent was directed to dispose of the matter in accordance with the law when they desired to proceed. Any pending miscellaneous petitions were also dismissed.
Facts
M/s. Victoria Granites, represented by its partner, filed a writ petition challenging a show cause notice dated February 19, 2019, issued by the Assistant Commissioner of Central Tax, Karimnagar GST Division. The petitioner sought to declare the show cause notice illegal, arbitrary, and beyond the scope of Section 66B(44) of the Finance Act, 1994. The petitioner also sought a stay on any consequential proceedings. The revenue, through its counsel, stated that no action had been initiated after the issuance of the show cause notice, and it was kept in abeyance pending adjudication of a similar matter in the Supreme Court. The petitioner then sought permission to withdraw the writ petition.
Key Issues
1. Whether the show cause notice dated February 19, 2019, issued by the Assistant Commissioner of Central Tax, Karimnagar GST Division, is illegal, arbitrary, and beyond the scope and ambit of Section 66B(44) of the Finance Act, 1994? (Question of law) Petitioner's contention: The petitioner argued that the show cause notice was illegal, arbitrary, and beyond the scope of Section 66B(44) of the Finance Act, 1994, which is the charging section for the levy of Service Tax. They also contended that it was contrary to the law laid down by the Supreme Court. Revenue's contention: The respondent revenue authority stated that no action had been initiated after the issuance of the show cause notice and that it was kept in the 'call book' as a similar matter was pending adjudication in the Supreme Court. No specific arguments were recorded for the revenue regarding the legality of the show cause notice itself.
Sections Cited
Section 66B(44)
AI-generated summary — verify with the full judgment below
AND
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) THURSDAY, THE THIRD DAY OF SEPTEIVBER TWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE M, S. RAMACHANDRA RAO rHE HoN'BLE sRr JUS+l'lc? r. AMARNATH GouD Between: It4is. Victoria Granites, H. No.9-1-193/1/A, Bhagath Nagar Karimnagar, Telangana Rep.by its partner Sri.Peddi Suresh, S/o. Sri Peddi Lingamurthy ...pETtTtoNER The Union Government of lndia, Rep. by its Secretary, lVinistry of Finance Department of Revenue, Govt. of lndla, Sastry Bhaan, New Delhi The Assistant Commissioner of Central tax, Central Excrse and Service tax Karimnagar GST Division, H.No.8-7-29611 , Hanuman Nagar, Karimnagar -505 001 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or direction or writ, more preferably a writ in the nature of a writ of mandamus declaring the impugned Show cause Notice No.09/2019(ST) dated. 1910212019 issued by the Respondent No.2 as being illegal, arbitrary, being beyond the scope and ambit of Section 668(44) of the Finance Act, 1994 which
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