Tejaswita Motors vs. The State Of Tripura And Ors
Facts
The petitioner, Tejaswita Motors, a regular taxpayer under GST, had its GST registration suspended by the Superintendent of Taxes, Ambassa, via a show-cause notice dated 21.02.2023. The notice cited "Fails to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due." The petitioner appeared before the authority on 28.02.2023, seeking clarification and restoration of registration, but was informed that detailed clarification would follow. No demand was quantified, and no adjudication order had been passed. The petitioner argued that the show-cause notice was vague, lacked details of tax periods and amounts due, and that the suspension of registration was not contemplated under Section 29(2) of the TSGST Act for non-payment of tax.
Held
The Court observed that the show-cause notice lacked specific details regarding the alleged contravention, the tax period, and the amount of tax or interest unpaid. The petitioner had also stated that no details were provided upon appearance, and no adjudication order had been passed. Consequently, the Court directed the petitioner to appear before the proper officer/respondent No.3 on 06.05.2023 with a reply, taking all available grounds. The proper officer was directed to take a decision in accordance with law within one week of the petitioner's appearance, after providing an opportunity for a personal hearing if an adverse order was contemplated. If the proper officer found the action unwarranted or the petitioner had an adequate explanation, the suspension of registration was to be revoked within the same timeframe. The Court explicitly stated that it had not delved into the merits of the case, and its observations would not prejudice the petitioner's case. The writ petition was disposed of in terms of these observations.
Key Issues
1. Whether the impugned show-cause notice dated 21.02.2023, issued by the Superintendent of Taxes, is legally sustainable in its current form, considering its alleged vagueness and lack of specific details regarding the contravention, tax period, and amount of tax/interest due, thereby violating the principles of natural justice and Article 19(1)(g) of the Constitution of India? 2. Whether the suspension of GST registration under Section 29(2) of the TSGST Act, 2017, is a permissible course of action for non-payment of tax, or if the appropriate recourse is limited to interest or proceedings under Section 73/74 of the Act? Petitioner's arguments: The show-cause notice is vague, cryptic, and suffers from fundamental infirmities, precluding the petitioner from furnishing a proper reply. Suspension of registration for non-payment of tax is not contemplated under Section 29(2) of the TSGST Act, which only allows for interest or proceedings under Sections 73/74. The action violates Article 19(1)(g) of the Constitution. The business continues to suffer due to improper action. Revenue's arguments: The writ petition is premature as it challenges a show-cause notice, which is not subject to challenge on jurisdictional grounds. The petitioner should be relegated to the proper officer to submit a reply.
Sections Cited
Section 29(2), Section 73, Section 74
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Cause title — parties, addresses and appearances
Order
01/05/2023
Heard Mr. B.N. Majumder, learned senior counsel assisted by Mr. B. Paul, learned counsel for the petitioner and Mr. Karnajit De, learned Addl. Government Advocate for the respondents-State.
By the impugned show-cause notice dated 21.02.2023 bearing reference No.ZA160223001550C (Annexure-3), the GST registration of the petitioner has been suspended by respondent No.3, the Superintendent of Taxes, Sales Tax Officer Class II, Ambassa Headquarter, Dhalai.
Mr. B.N. Majumder, learned senior counsel appearing for the petitioner, submits that petitioner is a regular taxpayer under the GST regime having registration under the State Goods
The judgment continues below.
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