Vallabh Textiles Vs Additional/Joint Commissioner (Delhi High Court)
Delhi High Court has dismissed a writ petition filed by Vallabh Textiles challenging the validity of a consolidated Show Cause Notice (SCN) dated May 29, 2024, which pertained to Financial Years (FYs) 2017-18 to 2021-22. The primary ground of challenge by the petitioner was against the issuance of a single, consolidated notice covering multiple assessment periods.
Upon examining Section 74 of the Central Goods & Services Tax Act, 2017 (CGST) and Delhi Goods & Services Tax Act, 2017 (DGST), the High Court found no statutory prohibition against issuing such a consolidated notice. Consequently, the court ruled that this challenge did not constitute a jurisdictional issue that would warrant entertaining a writ petition against an SCN.
Regarding the specific challenge for FY 2017-18, where the petitioner argued the SCN would not sustain due to provisions in Section 74(10) of the CGST/DGST Act, the court opted not to address this within the current writ. Instead, it left it open for Vallabh Textiles to initiate independent, appropriate proceedings concerning this particular financial year. Adhering to established principles governing the entertainment of SCN challenges under Article 226 of the Constitution, the High Court found no grounds to intervene and therefore dismissed the writ petition.
