Sri Nanjudappa Constructions Vs Union of India (Karnataka High Court)
Summary: The Karnataka High Court, in the case of Sri Nanjudappa Constructions Vs Union of India [Writ Petition No. 34742 of 2024], held that filing a writ petition against a tax intimation issued under Section 73(5) of the Central Goods and Services Tax Act, 2017 is premature. The court observed that such intimation is not a final demand but rather an opportunity for the taxpayer to either pay the ascertained tax with interest or file objections before further proceedings. It clarified that if the taxpayer fails to respond to the intimation, the authorities would issue a show cause notice (SCN) under Section 73(1), followed by an order under Section 73(9). Consequently, the court dismissed the writ petition, noting that no SCN or final order had been issued yet. The petitioner had argued against the tax intimation, claiming non-liability to pay tax on royalty. However, the respondent contended that the intimation merely facilitates voluntary compliance or an opportunity to raise objections, and it does not constitute a final determination. The court emphasized that taxpayers must exhaust the procedural remedies provided under the CGST Act before approaching the judiciary. This case reinforces the principle that writ petitions cannot substitute statutory remedies for addressing disputes under tax laws.
