Case Law Details
Prabhjot Singh Vs Union of India & Anr (Punjab and Haryana High Court)
The writ petition sought quashing of recovery notices dated 26.09.2024 and 17.03.2025 issued for recovery of government dues amounting to ₹2,21,49,685/-, arising from an adjudication order dated 10.05.2022 passed in Form GST MOV-11. The petitioner also challenged the adjudication order itself and the earlier show cause notice dated 07.07.2021. The adjudication order had confirmed tax demand along with an equal amount of penalty and was upheld by the Joint Commissioner (Appeals) on 07.12.2023.
The petitioner contended that after issuance of GST-MOV-09 on 07.07.2021, the Principal Secretary, Customs and Central Excise Department, by communication dated 13.07.2021, directed the CGST Department to hand over the case and confiscated goods to the Customs Department for action under the Customs Act, 1962. It was stated that Customs authorities took over the case and goods in June 2021, initiated criminal proceedings, and arrested the petitioner on 12.01.2022, following which he was granted default bail on 15.03.2022. On this basis, it was argued that parallel proceedings by CGST and Customs authorities amounted to illegal, arbitrary action and double jeopardy.
The respondents opposed the petition, pointing out that the statutory appeal filed by the petitioner under Section 107 of the CGST Act against the adjudication order had already been dismissed on 07.12.2023, a fact not disclosed in the writ petition. It was also submitted that the adjudication authority had specifically addressed the issues raised, and the petitioner had not challenged the appellate order thereafter.
During hearing, the petitioner conceded that the appeal had been dismissed and that the appellate order had not been challenged till date. A request was made to withdraw the writ petition with liberty to file a fresh one after annexing and challenging the appellate order.
The Court declined the request, holding that the writ petition was devoid of merit. It noted that the issue regarding proceedings under Section 130 of the CGST Act despite Customs seizure had already been considered in adjudication and rejected in appeal. In the absence of any challenge to the appellate order or any legal prohibition shown against such proceedings, the petitioner could not re-agitate the issue. Accordingly, the writ petition was dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. Prayer in this writ petition is for setting aside notice dated 26.09.2024 issued to petitioner seeking recovery of government dues arising out of adjudication order dated 10.05.2022 (Form GST MOV-11). Petitioner also seeks setting aside subsequent notice dated 17.03.2025 again seeking recovery of Rs.2,21,49,685/- as confirmed vide order dated 10.05.2022 (Form GST MOV-11) and upheld by Joint Commissioner (Appeals) vide order dated 07.12.2023.
2. Prayer in this writ petition is for setting aside notice dated 26.09.2024 issued to petitioner seeking recovery of government dues arising out of adjudication order dated 10.05.2022 (Form GST MOV-11). Petitioner also seeks setting aside subsequent notice dated 17.03.2025 again seeking recovery of Rs.2,21,49,685/- as confirmed vide order dated 10.05.2022 (Form GST MOV-11) and upheld by Joint Commissioner (Appeals) vide order dated 07.12.2023. of Rs.2,21,49,685/- along with penalty of the same amount. Order dated 10.05.2022 Form GST MOV-11 was then passed after affording an opportunity of hearing to petitioner. Petitioner challenged the same by filing an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 (for short ‘the CGST Act’)
3. Learned counsel for petitioner further submits that after issuance of GST-MOV-09 dated 07.07.2021, communication dated 13.07.2021 was issued by Principal Secretary, Customs and Central Excise Department, directing CGST Department to hand over the case and confiscated goods to the Commissioner, Customs Department. It is further stated in the said communication that case property/detained goods quantified as per MOV-04 dated 11.04.2021 be handed over for further necessary action under the Customs Act, 1962. Customs Department had taken the case file and alleged confiscated goods from CGST Department in the month of June, 2021 and petitioner was nominated in a complaint titled “Customs through Superintendent versus M/s PM Traders and others”. Petitioner submitted his reply. However, he was arrested on 12.01.2022 and illegally detained till 15.03.2022 when he was granted default bail (Annexure P-6).
4. It is contended that CGST Department and Customs Department are proceeding simultaneously and at the same time against petitioner in an illegal and arbitrary manner which amounts to double jeopardy and that petitioner has been unnecessarily victimized in this matter. Therefore, writ petition be allowed as prayed for. Recovery order dated 17.03.2025 (Annexure P-1) as well as order dated 26.09.2024 (Annexure P-2), adjudication order dated 10.05.2022 (Annexure P-3) and show cause notice dated 07.07.2021 (Annexure P-4) be set aside.
5. Learned counsel for the respondents, on advance notice, while opposing the writ petition points out that petitioner’s appeal under Section 107 of the CGST Act was dismissed on 07.12.2023, copy of which has not been attached and not even mentioned in the writ petition. It is further submitted that adjudicating authority in its order dated 10.05.2022 has specifically dealt with the issue and petitioner’s appeal against the same has also been dismissed. Moreover, even in his representation dated 02.09.2025, no such pleas as are being raised in the writ petition have been raised by the petitioner. Copy of order dated 07.12.2023 furnished in Court today by learned counsel for respondent, is taken on record subject to just exceptions. It is, thus, prayed that this writ petition be dismissed being devoid of any merit.
6. We have heard learned counsel for the parties and have gone through the file with their able assistance.
7. Upon pointed query, learned counsel for petitioner concedes that appeal filed by petitioner under Section 107 of the CGST Act was indeed dismissed on 07.12.2023, and in respect to the mention in his representation dated 02.09.2025, regarding challenge to said order dated 07.12.2023, a criminal miscellaneous petition had been filed before this Court, which was dismissed as withdrawn, the date and details thereof are however not available with him. It is further informed that said order dated 07.12.2023 has not been challenged thereafter till date. In all fairness, it is to be mentioned that learned counsel for petitioner at this stage has sought withdrawal of this writ petition with liberty to file afresh while appending order dated 07.12.2023 and laying a challenge thereto as well.
8. However in the given facts and circumstances, we do not find any ground to accede to such request. This writ petition is clearly devoid of any merit and does not call for interference by this Court in exercise of jurisdiction under Article 226 of the Constitution of India. The ground as raised before us in respect to proceedings under Section 130 of the CGST Act not being valid as goods have already been seized by the Customs Department, has been dealt with specifically by the adjudicating authority and appeal filed by petitioner was dismissed way back on 07.12.2023. Admittedly no appeal was filed by petitioner to challenge this order till date, though curiously a criminal miscellaneous application, details of which are not forthcoming, was filed and withdrawn. Petitioner at this stage cannot be permitted to raise the ground as above and that too in the absence of any provision of law pointed out before us which prohibits such action. No other argument has been addressed.
9. Keeping in view facts and circumstances as above, this writ petition is dismissed being devoid of any merit.
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