Jain Enterprises Vs State of H. P. & Anr. (Himachal Pradesh High Court)
Himachal Pradesh High Court has dismissed a petition filed by Jain Enterprises challenging a show cause notice and a subsequent demand order related to alleged excess or ineligible input tax credit under the HPGST/CGST Act. The petitioner had sought to quash a combined show cause notice dated June 2, 2023, demanding over Rs. 12.16 crore, and an order in Form DRC-07 dated April 21, 2025, demanding Rs. 1.14 crore, both including interest and penalty.
Jain Enterprises argued that the notices and orders were without jurisdiction, illegal, arbitrary, and violated principles of natural justice. However, the High Court observed that the petitioner had approached the court without even replying to the show cause notice or appearing before the tax authority.
The Court stated that the plea of “violation of principles of natural justice” was untenable, as such a violation would only arise if the respondents failed to provide an opportunity to reply to the show cause notice. This was not the situation in the present case.
The High Court deemed the petition a “misadventure” and dismissed it, along with any pending applications. The ruling reinforces the principle that taxpayers must first engage with the statutory process by responding to show cause notices before approaching higher courts on grounds of natural justice.
