Case Law Details
Tuli Motors & Anr Vs Union of India & ORS. (Delhi High Court)
In M/s. Tuli Motors through its Managing director & Anr v. Union of India & Ors. [ W.P. (C) 6766/2021 decided on July 20, 2021] M/s. Tuli Motors (Petitioner) challenges the show cause notice dated April 19, 2021 (SCN), and the summons dated October 10, 2017, and January 27, 2021 (Impugned Summons) issued for reopening the old assessments for the period 2015 to 2017.
The Petitioner submitted that the old assessments for the period 2015 to 2017 cannot be reopened in the year 2021. The Petitioner emphasises that after the repeal of Chapter V of the Finance Act, 1994 (“the Finance Act”) by the Central Goods and Services Tax Act, 2017 (“the CGST Act”), there is no power to initiate any fresh proceeding under the repealed Act i.e. the Finance Act.
Further, the Department submitted that the Hon’ble High Court, Delhi in case of Vianaar Homes Private Limited v. Assistant Commissioner (Circle-12), Central Goods & Services Tax, Audit-Il, Delhi & ors. [WP(C) 2245/2020, dated November 03, 2020] held that there is power to initiate fresh proceedings under the Finance Act despite coming into force of the CGST Act.
The Hon’ble High Court, Delhi directed that proceedings pursuant to the SCN and Impugned summons shall continue but the final orders shall not be given effect to till disposal of the writ petition. Listed the case on August 9, 2020 for next hearing.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The hearing has been conducted through video conferencing.
CM APPLs. 21307-21308/2021
Allowed, subject to just exceptions.
Accordingly, the applications stand disposed of.
W.P.(C) 6766/2021 & CM APPL. 21306/2021
Present writ petition has been filed challenging the show cause notice dated 19th April 2021 and the impugned summons dated 10th October 2017 and 27th January 2021 as well as the consequential proceedings emanating therefrom. Petitioner also challenges Notifications dated 30th January 2009, 16th September 2014, 10th February 2015, Circular dated 03rd March 2015, Para 12.3 and 12.4 of the Master Circular No. 1053/02/2017-CX and Rule 3 of the Service Tax Rules, 1994.
Learned counsel for the Petitioner submits that the old assessments for the period 2015 to 2017 cannot be reopened in the year 2021. He emphasises that after the repeal of the Chapter V of the Finance Act, 1994 by the Goods and Services Tax Act, 2017, there is no power to initiate any fresh proceeding under the repealed Act i.e. Chapter V of the Finance Act, 1994.
Issue notice.
Ms. Anju Gupta, Advocate accepts notice on behalf of respondent no.1-UOI. Mr. Harpreet Singh, Advocate accepts notice on behalf of respondent nos. 2 and 4. Let a counter-affidavit be filed within four weeks.
Rejoinder, if any, be filed before the next date of hearing
Mr. Harpreet Singh submits that this Court in Vianaar Homes Private Limited Vs. Assistant Commissioner (Circle-12), Central Goods & Services Tax, Audit-II, Delhi & Ors., WP(C) 2245/2020, dated 03rd November, 2020 has held that there is power to initiate fresh proceedings under Chapter V of the Finance Act, 1994 despite coming into force of the Goods and Services Tax Act, 2017.
Keeping in view the aforesaid, it is directed that proceedings pursuant to the impugned Show Cause Notices and summons shall continue but the final orders shall not be given effect to till disposal of the writ petition. Accordingly, the CM APPL. 21306/2021 stands disposed of.
List the present petition along with WP(C) 8730/2013 on the en block adjourned date 09th August, 2020.
The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
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