Case Law Details
State of Punjab Vs Shiv Enterprises & Ors. (Supreme Court of India)
GST: Detention: Quashing of Show Cause Notice (SCN) at The Initial Stage By HC – Declared As Pre-Mature By SC
In State of Punjab Vs. M/s. Shiv Enterprises & Ors in CA No. 359 of 2023 in (SLP (C) No. 19295/2022 dated: 16.01.2023 the Hon’ble Supreme Court of India has set aside the judgment of the Hon’ble High Court of Punjab & Haryana in Shiv Enterprises Vs. State of Punjab & Ors, CWP No. 18392 of 2021/04.02.2022 and remitted back the same for fresh disposal by the tax authority who issued notice U/s. 130 of the GST acts. It is held that HC has erred in entertaining the writ petition against the SCN and quashing of notice is pre-mature and the merits of the case have to be considered by the original authority in an appropriate proceeding.
FACTS OF THE CASE
The consignment of the original writ petitioner, M/s. Shiv Enterprises was intercepted and a show cause notice (SCN) was issued U/s. 130 of the CGST/SGST/IGST Acts,2017 directing to explain within 14 days, why the goods in question and the conveyance shall not be confiscated and why the tax, penalty and other charges payable in respect of such goods and the conveyance shall not be payable. In the SCN, there was a specific allegation with respect to evasion of tax, which was yet to be considered by the appropriate authority on the original writ petitioner’s appearing before the appropriate authority, who issued the notice. On receipt of the said notice the writ petitioner approached the Hon’ble High Court of Punjab & Haryana. The High Court entertained the writ petition against the show cause notice and set aside the show cause notice by observing that,
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