Case Law Details
I And S Communique Pvt Ltd Vs Commissioner of CGST (Delhi High Court)
Introduction: In the case of I And S Communique Pvt Ltd versus Commissioner of CGST, the Delhi High Court addressed the issue of a show cause notice (SCN) issued beyond the period of limitation prescribed under Section 73 of the Finance Act, 1994. The court’s decision to allow withdrawal of the petition has significant implications for the petitioner’s ability to respond to the notice and invoke relevant legal remedies.
Detailed Analysis:
1. Petitioner’s Contention: The petitioner challenged a show cause notice dated April 2021, arguing that it was issued beyond the period of limitation specified under Section 73 of the Finance Act, 1994.
2. Preliminary Objection: The respondents raised a preliminary objection regarding the maintainability of the petition, asserting that the show cause notice was issued under the proviso to Section 73(1), allowing for the application of an extended period of limitation. The respondents suggested that the petitioner should have raised this plea before the Adjudicating Authority.
3. Withdrawal of Petition: In light of the objection raised, the petitioner sought leave to withdraw the petition while reserving the right to raise all permissible pleas, including the invocation of the extended period of limitation, before the Adjudicating Authority. The petitioner also requested time to file a reply to the show cause notice.
4. Court’s Decision: The High Court allowed the withdrawal of the petition, enabling the petitioner to file a reply to the show cause notice within 30 days. The Adjudicating Authority was directed to adjudicate the show cause notice, including the question of the invocation of the extended period of limitation, after providing the petitioner with an opportunity for a personal hearing.
5. Clarification: The court clarified that its decision to allow withdrawal did not imply any consideration or comment on the merits of the case. All rights and contentions of the parties were reserved, and the time spent in the petition would not count towards the period of limitation prescribed under the Finance Act, 1994.
Conclusion: The Delhi High Court’s decision to allow withdrawal of the petition in the case of I And S Communique Pvt Ltd versus Commissioner of CGST underscores the importance of procedural compliance and the availability of legal remedies under tax laws. By reserving the petitioner’s right to raise relevant pleas before the Adjudicating Authority, the court ensures fair adjudication of the show cause notice while upholding the principles of natural justice. This case highlights the significance of adherence to statutory provisions and procedural fairness in tax-related disputes.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
For the reasons stated in the application, application is allowed. Delay is condoned. Counter affidavit is taken on record. Rejoinder is already taken on record.
W.P.(C) 6819/2021
1. Petitioner impugns show cause notice dated 04.2021 and contends that the show cause notice is beyond the period of limitation prescribed under Section 73 of the Finance Act, 1994.
2. Learned counsel for the respondents raises a preliminary objection with regard to the maintainability of the present petition and submits that the show cause notice has been issued by applying proviso to Section 73(1) and the extended period of limitation has been made applicable. Learned counsel without prejudice submits that this plea could have been raised by the petitioner before the Adjudicating Authority.
3. In view of the above objection, learned counsel for the petitioner seeks leave to withdraw the petition reserving the right of the petitioner to raise all pleas permissible in law including the invocation of extended period of limitation before the Adjudicating He, however, prays that in view of pendency of the present petition, reply to the show cause notice could not be filed and time be granted to file a reply.
4. In view of the above, the petition is dismissed as withdrawn reserving the right of the petitioner to take all permissible pleas in law in response to the show cause notice. Petitioner shall file a reply to the show cause notice within a period of 30 days from today. Thereafter, it would be open to the adjudicating authority to adjudicate the show cause notice including the question of invocation of extended period of limitation in accordance with law, after giving an opportunity of personal hearing to the petitioner, without being influenced by anything stated in this order.
5. It is clarified that this Court has neither considered nor commented on the merits and contentions of the either party. All rights and contentions of the parties are reserved. It is further clarified that the time spent in this petition shall not be counted towards the period of limitation prescribed under Section 73(4B) (b) of the Finance Act, 1994.
6. Petition is disposed of in the above terms.
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