Dalam Tracon Pct. Ltd. Vs Assistant Commissioner of State Tax, Behala Charge & Ors. (Calcutta High Court)
Calcutta High Court Quashed Second Show Cause Notice Issued on Self Same Ground Noted in Earlier Show Cause Notice, Which Was Dropped by Authority
In a recent judgment, the Calcutta High Court ruled on a writ petition filed by Dalam Tracon Pct. Ltd. challenging a show-cause notice issued by the West Bengal Goods and Services Tax (WBGST) authority. The petitioner contended that the notice, dated 27th July 2023, was issued on the same grounds as a previous notice issued on 16th May 2023, which had been dropped by the authority after considering the petitioner’s response.
Detailed Analysis:
The petitioner brought a writ petition before the Calcutta High Court to challenge the show-cause notice issued by the WBGST authority on 27th July 2023. The primary ground for the challenge was that the impugned notice was the second one issued by the authority and contained identical allegations to those in the earlier notice issued on 16th May 2023. Importantly, the authority had dropped the earlier notice after reviewing the petitioner’s response and supporting documents.
In response to the petition, the Calcutta High Court considered the facts and circumstances of the case. The Court noted that the impugned show-cause notice, being the second one with the same allegations as the earlier notice that had been dropped by the authority, lacked legal sustainability. The Court, therefore, quashed the show-cause notice dated 27th July 2023.
However, the Court clarified that the quashing of this notice would not prevent the respondent WBGST authority from issuing a fresh notice in the future on different grounds if such grounds were available. The Court emphasized that all legal consequences would automatically follow due to the quashing of the impugned show-cause notice.
Conclusion:
The Calcutta High Court’s judgment in the case of Dalam Tracon Pct. Ltd. vs. Assistant Commissioner of State Tax, Behala Charge & Ors. highlights the importance of legal sustainability in the issuance of show-cause notices. In this instance, the Court ruled that the second notice, which duplicated allegations from a previously dropped notice, was not legally sustainable and consequently quashed it. The decision underscores the need for authorities to ensure the validity and necessity of such notices to prevent undue harassment or legal challenges.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Heard learned advocates appearing for the parties.
By this writ petition, petitioner has challenged the impugned show-cause notice dated 27th July, 2023 being Annexure P-5 to the writ petition issued by the respondent WBGST authority concerned, on the ground that the respondent authority concerned has issued notice on 16th May, 2023 on exactly similar ground and which was dropped by them after considering the reply filed by the petitioner.
Considering the facts and circumstances of the case, I am of the considered view that the impugned show-cause notice which is the second one having exactly the same allegation as in the earlier show-cause notice which was dropped by the respondents after being satisfied by the reply and documents produced by the petitioner, the aforesaid impugned show-cause notice dated 27th July, 2023, is not sustainable in law and the same is quashed. However, quashing of this notice will not be a bar on the part of the respondent WBGST authority to issue any fresh notice in future on any new ground if available. All legal consequences will follow automatically in view of quashing of the aforesaid impugned show-cause notice.
With this observation and direction, this writ petition being WPA 22902 of 2023 is disposed off.
