Prime Metals Vs Central Board of Indirect Taxes And Customs (Rajasthan High Court)
The Rajasthan High Court dismissed a writ petition challenging a show cause notice dated 25.06.2025, an Order-in-Original dated 17.12.2025, Circular No. 3/3/2017, and the constitutional validity of Section 16(2)(c) of the CGST Act, 2017/RGST Act, 2017. The petitioner contended that no opportunity of cross-examination had been provided during the adjudication proceedings.
The respondents opposed the petition on the ground that the petitioner had an effective alternative statutory remedy of appeal against the adjudication order. Reliance was placed on the Supreme Court’s decision in M/s. Trillion Lead Factory Private Ltd. v. Superintendent of Central Tax, wherein it was held that writ petitions against show cause notices are generally not maintainable. The respondents also relied on the Rajasthan High Court’s Division Bench decision in Tanushree Logistics Private Limited v. State of Rajasthan, which recognized the availability of an appellate remedy under Section 107 of the CGST Act.
After hearing the parties and examining the record, the Court observed that the petitioner had a statutory alternative remedy of appeal under Section 107(1) of the CGST Act before the appellate authority. In view of the availability of this remedy, the Court declined to interfere in the matter. The writ petition was dismissed with liberty to the petitioner to raise all legal and factual grounds before the appellate authority.
