M/S. Best Security Services vs. Union Of INDIA

Facts

The petitioner, M/s. Best Security Services, challenged a Show Cause Notice (SCN) dated August 31, 2026, issued by the respondent authorities. The SCN was issued under Sections 76 and 122 of the Central Goods and Services Tax Act, 2017, and corresponding State SGST provisions, as well as Section 20 of the IGST Act, 2017. It pertains to the tax period from April 2019 to March 2026 and demands GST amounting to Rs. 20,62,01,771/-, along with applicable interest and penalty. The petitioner argued that the issuing authority lacked jurisdiction for the specified period. The respondents contended that the petitioner should raise these objections before the competent authority, and the writ petition challenging the SCN was not maintainable.

Held

The Court held that the writ petition challenging the Show Cause Notice was not maintainable at this juncture. The primary challenge raised by the petitioner related to the jurisdiction and competence of the respondent-authority to issue the notice. The Court found that the petitioner had an efficacious remedy for placing objections, including those regarding jurisdiction and the validity of the proposed levy, before the competent authority. The Court did not decide on the merits of the petitioner's contentions regarding jurisdiction or the validity of the demand. Instead, it disposed of the petition with liberty to the petitioner to submit a detailed reply and objections to the impugned show cause notice before the competent authority within sixty days of receiving the order. The competent authority was directed to consider and decide these objections, including the jurisdictional aspect, by passing a reasoned and speaking order expeditiously and on its own merits.

Key Issues

1. Whether the writ petition challenging the Show Cause Notice dated 31.08.2026 is maintainable at this juncture, considering the petitioner has an alternative efficacious remedy. (Question of law) Petitioner's Contention: The petitioner argued that the impugned show cause notice was issued by respondent authorities for an expanded financial year from 2019-20 to 2025-26, demanding a significant GST amount, interest, and penalty, and that the issuing authority lacked jurisdiction. Therefore, the show cause notice is liable to be quashed. Respondents' Contention: The respondents submitted that the objections raised by the petitioner in the writ petition could be raised before the appropriate/competent authority. They stated that these objections would be duly considered and decided by the authority concerned in accordance with Section 76 of the Central Goods and Services Tax Act, 2017, rendering the writ petition challenging the show cause notice not maintainable.