GST
TRT-2025-
Supreme Court
Date:-16-01-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 16 January 2023
Parties: THE STATE OF PUNJAB vs M/S SHIV ENTERPRISES & ORS
Facts
- The Respondent, M/S SHIV ENTERPRISES & ORS was issued notice dated 14.09.2021 wherein they were called upon to show cause within 14 days from as to why the goods in question and the conveyance used to transport such goods shall not be confiscated and why the tax, penalty and other charges payable in respect of such goods and the conveyance shall not be payable.
- In exercise of powers under Article 226 of the Constitution of India, the High Court of Punjab and Haryana entertained the writ petition against the show cause notice and set aside the show cause notice under Section 130 of the Act and directed to release the goods.
Issue
- Whether High Court had the power to entertain the writ petition against the show cause notice?
Order
- The Supreme Court observed that it was premature for the High Court to opine anything on whether there was any evasion of the tax or not. The same was to be considered in an appropriate proceeding for which the notice under Section 130 of the Act was issued. Therefore, the Court was of the opinion that the High Court has materially erred in entertaining the writ petition against the show cause notice and quashing and setting aside the same.
- However, the order passed by the High Court releasing the goods in question is not to be interfered with as it is reported that the goods have been released by the appropriate authority.
- Therefore, the Court set aside the impugned judgment and order passed by the High Court to the extent quashing and setting aside the notice dated 14.09.2021, issued under Section 130 of the CGST Act.
- Directed to respondent to file a reply to the show cause notice and pass an appropriate order and all contentions/defences which may be available to the respondent-original writ petitioner are kept open to be considered in accordance with law.
- The petition is partly allowed.
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