Writ jurisdiction at stage of show cause notice not to be exercised: HC

Case Details: Mahendra Sponge & Power Ltd. v. Assistant Commissioner, State Tax (SGST), Circle-9 - [2022] 140 taxmann.com 488 (Chhattisgarh)

Judiciary and Counsel Details

• • Parth Prateem Sahu, J.
  • Bhishma Ahluwalia, Adv. for the Appellant.
  • Sandeep Dubey & Ms Ruchi Nagar, Advs. for the Respondent.

Facts of the Case

A notice under Section 61 in FORM GST ASMT-10 was issued to the petitioner followed by show-cause notice under Section 73 of CGST Act. The petitioner didn’t reply to the notice and filed writ petition against the same. It was contended that the notice was not proper and detailed show-cause notice to be issued to petitioner.

High Court Held

The Honorable High Court observed that the notice under Section 61 of CGST Act, calling explanation upon the discrepancies found by the authority to which the petitioner did not reply, thereafter, show-cause notice under Section 73 of CGST Act along with the summary of show-cause notice was also issued. However, the petitioner failed to reply to the notice. Thereafter, the revenue authority passed order and determined tax liabilities, interest and penalty upon petitioner. In the facts of the case, the Court was of the opinion that no exceptional circumstances were available for entertaining this writ petition and the petitioner may file an appeal under Section 107 of CGST Act, 2017. The Court also held that writ jurisdiction at stage of show cause notice not to be exercised when assessee was having statutory alternate remedy available for challenging order.