North Western Carrying Corporation Vs Union of India (Gujarat High Court)
The Gujarat High Court dismissed a writ petition challenging a Show Cause Notice dated 13.03.2018 issued under Section 73(1) of the Finance Act, 1994. At the outset, the petitioner’s counsel fairly submitted that the issue raised in the petition had already been decided by a Coordinate Bench of the High Court in Sahitya Mudranalaya Pvt. Ltd. Vs. Additional Director General. In light of that decision, the petitioner requested that it be relegated to participate in the adjudication proceedings.
The petitioner had sought quashing of the Show Cause Notice issued under Section 73(1) of the Finance Act, 1994, contending that the notice lacked jurisdiction because the service tax provisions contained in Chapter V of the Finance Act, 1994 had been repealed by Section 173 of the Central Goods and Services Tax Act, 2017 (CGST Act).
The High Court referred to the findings of the Coordinate Bench in Sahitya Mudranalaya Pvt. Ltd., which had examined Sections 173 and 174 of the CGST Act. The earlier judgment held that although Chapter V of the Finance Act, 1994 stood omitted by virtue of Section 173, Section 174(2)(e) of the CGST Act expressly preserves investigations, inquiries, verifications, assessments, adjudication proceedings, other legal proceedings, recovery of arrears, and remedies relating to duties, taxes, penalties, interest, and liabilities under the repealed law. It further provides that such proceedings may be instituted, continued, or enforced as if the Finance Act, 1994 had not been amended or repealed.
