AKA Logistics Private Limited Vs Union of India (Jharkhand High Court)
GST Show Cause Notice Can Be Challenged in Writ Due to Prima Facie Lack of Jurisdiction; Jharkhand HC Refuses to Relegate Taxpayer to Alternative Remedy Due to Jurisdictional Challenge; Writ Against GST Show Cause Notice Maintainable Because Composite vs Mixed Supply Issue Is Legal Question; Jharkhand HC Finds Prima Facie Abuse of Process in GST Show Cause Proceedings.
The writ petition challenged a show cause notice issued under the CGST/JGST Act. The revenue raised a preliminary objection that the petitioner had approached the High Court by bypassing the statutory procedure under the GST laws and that all objections, including the contention that the transaction constituted a composite or mixed supply, could be raised before the assessing officer. The revenue relied on judicial precedents to contend that writ petitions should ordinarily not be entertained against show cause notices and that the petitioner had an alternative remedy. It also referred to decisions concerning the powers of a “proper officer” and the invocation of the extended period of limitation.
The petitioner argued that the impugned show cause notice was without jurisdiction and amounted to an abuse of process of law. It contended that the dispute involved a pure question of law, namely whether the supply in question was a “composite supply” under Section 8(a) read with Sections 2(30) and 2(90) of the Act, or a “mixed supply” under Section 8(b) read with Section 2(74). The petitioner further submitted that the transportation of power plant ash up to a distance of 50 km was being sought to be taxed under headings relating to “other services” and “cargo handling services,” raising a pure legal issue suitable for determination in writ jurisdiction.
