Chhattisgarh State Beverages Corporation Limited Vs Office of Commissioner CGST (Chhattisgarh High Court)
The Chhattisgarh High Court dismissed a writ petition challenging a show cause notice (SCN) issued for recovery of service tax, holding that writ jurisdiction under Article 226 of the Constitution is not ordinarily invocable at the SCN stage. The petitioner had sought quashing of an SCN dated 08.07.2008 proposing service tax demand for the year 2006–07 by treating it as a clearing and forwarding (C&F) agent, along with consequential proceedings, interest, and penalty. The petitioner contended that the issue had already been settled in its favour by a Division Bench judgment affirming a Tribunal order that it was not a C&F agent, and therefore the issuance of the SCN was unwarranted.
The respondent opposed the writ petition on the ground of prematurity, pointing out that the petitioner had already submitted its reply to the SCN and that no adjudication order had yet been passed. It was submitted that all objections raised in the writ petition could be urged before the adjudicating authority.
After hearing both sides, the Court noted that since the petitioner had already responded to the SCN, it would not be appropriate for the High Court to examine the legality of the notice at this stage. The Court observed that the adjudicating authority had yet to pass any order and that the petitioner was free to raise all factual and legal grounds before that authority. Consequently, the Court declined to exercise its extraordinary jurisdiction and disposed of the writ petition as premature, granting liberty to the petitioner to pursue remedies before the adjudicating authority in accordance with law. No costs were awarded, and all pending applications were disposed of.
