M/S Ajit Construction vs. Union Of INDIA

Facts

The petitioner, M/s Ajit Construction, filed a writ petition before the High Court of Chhattisgarh challenging a notice dated August 8, 2023, issued by the Superintendent (ADJ) GST and Central Excise, Raipur. The petitioner contended that the notice was issued without legal authority and was intended to harass them. The respondents argued that a writ petition is not maintainable against a show-cause notice. The Court heard both parties and considered the nature of the challenge being against a show-cause notice.

Held

The Court held that a writ petition is not the appropriate remedy at the stage of a show-cause notice. Instead of directly interfering with the notice, the Court granted the petitioner liberty to file a detailed reply to the show-cause notice. The Court directed that the reply should be considered by the authority strictly in accordance with the law. The petitioner was also granted liberty to challenge the final outcome of the proceedings if occasion arises after the reply is considered. The Court did not decide on the merits of the petitioner's claim regarding the lack of authority for the notice.

Key Issues

1. Whether a writ petition is maintainable against a show-cause notice issued under GST law? (Question of law) The petitioner argued that the notice was issued without any authority of law and sought its quashing. The respondents contended that a writ petition is not tenable against the issuance of a show-cause notice, implying that the petitioner should respond to the notice first.