Datta Iron & Steel Pvt Ltd Vs DCIT (Calcutta High Court)
The case of Datta Iron & Steel Pvt Ltd Vs DCIT marked a significant decision from the Calcutta High Court, addressing the issue of methodology and jurisdiction in the issuance of a show cause notice by GST authorities. The court disposed of the appeal by instructing the respondents to file an affidavit in opposition.
In this appeal, the petitioners challenged a show cause notice issued by the respondent department. The primary issues raised were the methodology and jurisdiction used in issuing the notice. The Single Bench declined to grant any interim order as requested by the petitioners but instead directed the respondents to file an affidavit-in-opposition. In the appeal, the court affirmed the Single Bench’s decision and emphasized the need for respondents to file their affidavit-in-opposition at the earliest. This directive reinforces the court’s commitment to due process and the fair hearing of both parties in tax dispute proceedings.
By directing the filing of the affidavit in opposition, the Calcutta High Court reaffirms the principle of procedural fairness. The ruling also illustrates the court’s resolve to examine issues of methodology and jurisdiction related to the issuance of show cause notices by tax authorities.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. This intra court appeal is directed against the order passed by the learned Single Bench dated 6th June, 2023 in WPA 9448 of 2023 by which the learned Single Bench declined to grant any interim order as sought for by the writ petitioners but directed affidavit-in-opposition to be filed by the respondents within four weeks and reply, if any, within two week thereafter. The writ petition was directed to be listed for final hearing in the monthly list of August, 2023
2. The petitioners had impugned a show cause notice issued by the respondent department in the writ petition and has rightly held by the learned Single Bench the question of granting an inter order staying all further proceedings of the show cause notice could not have been granted. In any event, the appellants question the methodology and jurisdiction in issuance of the show cause notice.
3. Therefore, we are of the view that the respondents should file their affidavit-in-opposition at the earliest and reply, if any, to the said affidavit can be filed by the appellants and the writ petition can be sent down for hearing earlier than August, 2023.
4. In the light of the above, the appeal stands disposed of by directing the respondents to file their affidavit-in-opposition not later than 5th July, 2023, reply, if any, within 10thJuly, 2023 and let the matter be listed before the learned Single Bench in the week commencing 17th July, 2023.
