M/S Shiv Shakti Engineering Works vs. Union Of INDIA
Held
The Court observed that the notice, Annexure P-1, was indeed a letter calling for an explanation from the petitioner, accompanied by a calculation sheet. Given this, the Court directed the respondents to provide a hearing to the petitioner to consider their stand. The Court emphasized that the respondents should pass their order without being influenced by the pre-calculated amount shown in the notice. The petitioner was granted liberty to challenge the final order passed by the respondents before the appropriate forum if they remained aggrieved. The Court did not decide on the legality of the interest imposition itself but focused on the procedural aspect of ensuring a fair hearing.
Facts
The petitioner, M/s Shiv Shakti Engineering Works, filed a writ petition challenging the imposition of interest levied on the gross amount of tax under Section 50 of the Goods and Services Tax Act. The petitioner contended that a notice dated June 22, 2019, issued by Respondent No. 3 (Assistant Commissioner of State Tax), included a calculation sheet showing a predetermined imposition of interest/tax amounting to Rs. 41 lakhs, which they argued was illegal. The respondents, represented by counsel for respondents 2 and 3, argued that the notice was merely a letter calling for an explanation, and the petitioner had the opportunity to present their defense.
Key Issues
1. Whether the notice dated June 22, 2019, issued by the Assistant Commissioner of State Tax, which included a calculation sheet showing a predetermined imposition of interest/tax, constitutes a predetermined finding and is therefore illegal under Section 50 of the Goods and Services Tax Act? Petitioner's argument: The petitioner argued that the attached calculation sheet in the notice demonstrated a predetermined stance by the authorities, rendering the imposition of interest illegal and contrary to Section 50 of the Act. Respondents' argument: The respondents contended that the notice was simply a letter seeking an explanation from the petitioner, and the petitioner could adequately present their case against the proposed levy/imposition of tax/interest.
Sections Cited
Section 50
AI-generated summary — verify with the full judgment below
1 HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 106 of 2019 M/s Shiv Shakti Engineering Works Through The Partner Shri Jaya Kumar Nair, S/o Shri Shiva Dasan, Aged About 39 Years, R/o 1, Near Officer Club, Depot Para, Bijapur, 494444 Chhattisgarh.,
District
:
Bijapur,
Chhattisgarh --- Petitioner Versus
Union of India through Secretary, Finance, Department of Revenue, Central Board of Excise & Customs, Room No. 46, North, Block, New Delhi. 110001, District : New Delhi, Delhi
Principal Commissioner, Central Excise, Customs And GST (Central GST and Central Excise), Central Excise Building, Tikrapara, Dhamtari Road, Raipur District : Raipur, Chhattisgarh
Assistant Commissioner of State Tax, Vanijyik Bhavan, Mantralaya, Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh --- Respondents For the Petitioner : Mr. Adhiraj Surana, Advocate For respondent No.1 : Mr. B. Gopa Kumar, Asst. Solicitor Gen. For other respondents : Mr. Manish Sharma, Advocate Hon'ble Shri Justice Goutam Bhaduri Order on Board 23.07.2019
Learned counsel for the petitioner would submit that this writ petition has b
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