Case Law Details
Surya Businees Private Limited Vs State of Assam (Gauhati High Court)
Introduction: The Gauhati High Court is set to adjudicate a critical case involving Surya Business Private Limited versus the State of Assam. The focal point of contention is the validity of a Show Cause Notice (SCN) issued under Section 73 of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017. The petitioner challenges the SCN, arguing that it lacks tenability due to the prior issuance of an order under Section 65(6) on 17.06.2023.
Detailed Analysis: The petitioner, represented by Mr. A. Kanodia, contends that the SCN, issued concerning the annual returns of GSTR – 09, holds no jurisdictional standing. According to Mr. Kanodia, an order under Section 65(6) of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017, had already been passed and communicated through Form GST ADT-02. Consequently, the issuance of a fresh SCN under Section 73(1) is deemed without jurisdiction.
In response, Mr. B. Gogoi, learned Standing Counsel for the Finance and Taxation Department, has sought additional time to delve into the legal intricacies raised by the writ petition. Mr. Gogoi also expresses the intention to ascertain whether any subsequent orders have been issued, potentially proceeding ex parte against the noticee.
The Gauhati High Court, taking cognizance of the complexity of the case, has listed it for further hearing on 15.11.2023. Pending a thorough examination of the legal issues, the court emphasizes maintaining the status quo concerning the proceedings initiated by the SCN dated 28.09.2023.
Conclusion: As the case unfolds, the verdict of the Gauhati High Court will significantly impact the jurisdictional nuances of tax-related disputes, particularly regarding the interplay between Section 65(6) and Section 73(1). Stay tuned for updates on this crucial legal battle between Surya Business Private Limited and the State of Assam, shaping the landscape of tax law in the region.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Heard Mr. A. Kanodia, learned counsel for the petitioner and Mr. B. Gogoi, learned Standing Counsel, Finance and Taxation Department for all the respondents.
2. In this writ petition, the petitioner has assailed a Show Cause Notice issued purportedly under Section 73 of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017 on the ground that the noticee did not declare correct tax liability while filing the annual returns of GSTR – 09. The petitioner-noticee was asked to submit its reply by 28. 10.2023.
3. Mr. Kanodia, learned counsel for the petitioner has submitted that the Show Cause Notice purportedly issued under Section 73 of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017 is not tenable in view of the fact that an order under Section 65[6] of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017 had already been issued under Form GST ADT-02 on 17.06.2023. Since an order under Section 65[6] had already been passed, issuance of a Show Cause Notice under Section 73[1] is without jurisdiction. Mr. Kanodia has further submitted that as the writ petition has been preferred challenging the jurisdiction to issue a Show Cause Notice under Section 73[1] of the Central Goods and Services Tax Act, 2017/Assam Goods and Services Tax Act, 2017, the petitioner has not yet submitted its reply in response to the Show Cause Notice on or before
4. Gogoi, learned Standing Counsel, Finance and Taxation Department has sought for a week’s time to obtain instruction as regards the legal issue raised in this writ petition. Mr. Gogoi has further submitted that he will also obtain instruction as to whether any order has been passed subsequent to 28.10.2023 to proceed ex parte against the noticee.
5. As sought for by Mr. Gogoi, list the case on 15.11.2023.
6. Having regard to the issue involved in this writ petition, it is observed that if no order has been passed on or before 28.10.2023 or subsequent thereto till date, status quo as regards the proceedings stated to be drawn up vide the Show Cause Notice dated 28.09.2023, be maintained till the next date of listing.
