Viswaat Chemicals Ltd. & anr. Vs Union of India (Bombay High Court)
Assessee should respond to the SCN and take all grounds before the authority, and if aggrieved, should avail an alternate statutory remedy of appeal: Bombay High Court
Summary: The Bombay High Court in Viswaat Chemicals Ltd. & Anr. v. Union of India [Writ Petition (L) No. 27725 of 2024] addressed a case where the petitioners challenged a show cause notice (SCN) and the subsequent adjudicating order. The petitioners argued that the SCN, issued in December 2023, was vague and deprived them of a proper opportunity to respond, thus violating principles of natural justice. However, the court found that the SCN contained all necessary details, giving the petitioners sufficient information about the case against them. The petitioners had filed a detailed response in April 2024 but did not seriously contest the clarity of the SCN at that stage. The court deemed their claim of vagueness as an afterthought aimed at bypassing the available statutory appeals process.
The court reiterated the importance of exhausting alternative remedies before filing a writ petition. The petitioners were seen as attempting to circumvent the appeal process and avoid the requirement for a pre-deposit before filing appeals. The court referred to several precedents, including the Whirlpool Corporation case, which emphasized that writ petitions should only be entertained under specific circumstances, such as a violation of fundamental rights or jurisdictional issues. Ultimately, the writ petition was dismissed with costs, and the petitioners were directed to pursue alternate remedies under the Central Goods and Services Tax (CGST) Act if still aggrieved by the adjudicating authority’s order.
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The Hon’ble High Court of Bombay in the case of Viswaat Chemicals Ltd. & Anr. v. Union of India [Writ Petition (L) No. 27725 of 2024 dated October 14, 2024] dismissed the writ petition and held that an Assessee should respond to the Show Cause Notice (“SCN”) and taken all grounds before the authority, and if aggrieved, should have availed the alternate statutory remedy of appeal.
