Case Law Details
Nektar Therapeutics India Pvt Ltd Vs Union of India (Telangana High Court)
In a significant decision by the Telangana High Court, a show cause notice issued to Nektar Therapeutics India Pvt Ltd was quashed on the grounds of being issued by an improper officer. This case underlines the importance of jurisdiction and the correct exercise of authority in issuing show cause notices under the Central Tax, Central Excise & Service Tax regulations.
The case pertained to a show cause notice issued for the recovery of a previously granted refund. This refund was reportedly granted erroneously. However, the Telangana High Court determined that the Assistant Commissioner, who issued the notice, was not the proper officer, as clarified by circular No.31/05/2018-GST. The respondents conceded to this contention, agreeing that the notice could be set aside and reissued by a proper officer. However, the counsel for the petitioner argued that the initial claim for the refund had been affirmed by the jurisdictional Customs, Excise & Service Tax Appellate Tribunal (CESTAT), thus demanding judicial restraint in the recovery process.
Conclusion: The Telangana High Court’s decision in the case of Nektar Therapeutics India Pvt Ltd vs Union of India reinforces the necessity of issuing authorities correctly executing their roles. This case serves as a significant precedent for maintaining appropriate jurisdiction and the exercise of authority in future legal scenarios. Furthermore, it upholds the importance of judicial discipline and propriety when dealing with established and affirmed claims.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
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