Chenab Machinery Engineering PVT LTD Th Vijay Aggarwal vs. Union Of INDIA Th Ministry Of Finance New Delhi And Others

Facts

The petitioner, Chenab Machinery and Engineering Pvt. Ltd., filed a writ petition challenging a show cause notice dated August 5, 2024, issued by the Assistant Commissioner, CGST/Central Excise. The petitioner contended that the notice was issued without jurisdiction and that they were not afforded an opportunity to be heard prior to its issuance. The respondents argued that the petitioner should have responded to the show cause notice instead of filing a writ petition. The time granted to respond to the show cause notice had expired, but no final order had been passed by the respondents.

Held

The Court did not decide the merits of the petitioner's contentions regarding jurisdiction and opportunity to be heard. Instead, the Court deemed it appropriate to dispose of the writ petition by directing the petitioner to file a response to the impugned show cause notice within one week from the date of the order. The respondents were directed to consider and decide the petitioner's response within ten days thereafter, taking into account the petitioner's submissions. The petitioner was also granted liberty to challenge any adverse order passed by the respondents. The Court did not make any findings on the validity of the show cause notice itself or the jurisdiction of the issuing authority.

Key Issues

1. Whether the show cause notice dated August 5, 2024, was issued by an authority without jurisdiction, as per the relevant provisions of the CGST Act and Rules? 2. Whether the petitioner was denied an adequate opportunity of being heard prior to the issuance of the show cause notice, in violation of principles of natural justice? The petitioner argued that the show cause notice was issued by an incompetent authority and that the principles of natural justice were violated by not providing an opportunity to be heard before its issuance. The respondents contended that the petitioner ought to have responded to the show cause notice and raised these objections before the concerned authority, rather than approaching the High Court through a writ petition.