Case Law Details
Acme Cleantech Solutions Pvt Ltd Vs Union of India And Others (Punjab and Haryana High Court)
Introduction: In a significant development, the Punjab and Haryana High Court has intervened in the ongoing nationwide proceedings concerning corporate guarantee matters. This article explores the court’s decision to stay the proceedings pending a response from the Central Board of Indirect Taxes and Customs (CBIC) and analyzes its legal implications.
Detailed Analysis: The court’s decision to stay the corporate guarantee proceedings stems from concerns raised regarding the jurisdictional boundaries of adjudicatory powers. Legal arguments presented in reliance on precedents, such as the Union of India Vs. Karvy Stock Broking Ltd. case, underscore the potential overreach of CBIC’s clarificatory circular issued on 27th October 2023.
Moreover, the reference to a similar case in the High Court of Delhi highlights the broader implications of the issue at hand. The petitioner’s appeal, coupled with the direct impact of the circular on the powers of the Appellate Authority, underscores the urgency of addressing these jurisdictional conflicts.
The stay order issued by the Punjab and Haryana High Court serves to maintain the status quo until further clarity is obtained from CBIC. By suspending the effect and operation of the impugned circular, the court ensures that the Appellate Authority can adjudicate the petitioner’s case without undue influence.
Conclusion: The Punjab and Haryana High Court’s decision to stay the corporate guarantee proceedings pending CBIC’s response reflects a commitment to upholding judicial integrity and jurisdictional clarity. As legal proceedings unfold, the outcome will have far-reaching implications for similar cases nationwide. This development underscores the importance of legal scrutiny and the judiciary’s role in safeguarding the rights of litigants amidst regulatory changes.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
Learned counsel rely on (2019) 11 SCC 631, Union of India Vs. Karvy Stock Broking Ltd., and submit that impugned Circular dated 27.10.2023 (Annexure P-2) seek to take away the adjudicatory powers of the Assessing Authority as well as the Appellate Authority by clarifying provisions in the nature of adjudication.
Learned counsel also rely on the interim order passed by the High Court of Delhi in W.P (C) 2966 of 2024 titled as ‘Sterlite Power Transmission Limited Vs. Union of India & Ors.‘, where similar issue has been taken up. Learned counsel submit that the petitioner has preferred an appeal, however, the clarification item No.2 in the Circular dated 27.10.2023 directly impinges upon the powers of Appellate Authority and the vary purpose of filing of appeal stands negated.
Notice of motion for 20.08.2024.
Mr. Rishabh Kapoor, Sr. Standing Counsel, appears through Video Conferencing and accepts notice on behalf of respondents No.1, 2, 4, 5 and 6 & Mr. RKS, Brar, Addl. A.G. Punjab, accepts notice on behalf of respondent No.2.
Meanwhile, effect and operation of the impugned Circular dated 27.10.2023 (Annexure P-2) relating to Item No.2 shall remain stayed and the Appellate Authority shall be free to decide the case of the petitioner without being influenced by the Clarification.
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