Order date – 21 December 2022

Facts –

• The Petitioner, Joyous Blocks & Panels Private Limited & Anr. was issued with a show cause notice by the authority dated 26th September, 2022 with regard to classification of the product manufactured by the appellants.
• After the inspection of the business premises of the appellants was completed by the authority, a query was raised by the officer by proceedings dated 8th July, 2022 calling upon the appellants  to state as to why HSN Code of Concrete Masonry Units-AAAC Blocks will not fall under the broad heading 6810 with applicable tax rate 18%. as the appellants are not making fly ash blocks/bricks as per the standard mentioned in BIS Product Code.  The appellants had submitted an elaborate reply for such a query and the authority while issuing the show cause notice has dealt with the reply under the heading “Rebuttal on the factual points” and proceeded to reject all the contentions which were raised by the appellants and ultimately the authority would state that he has no other option but to proceed to take action under Section 74(1) of the WBGST Act /CGST Act, 2017 read with rule 142(1) of WBGST/CGST Rules 2017 and the summary of the show cause notice will be issued electronically in FORM GST DRC-01, specifying therein the amount of tax, interest and penalty payable by the appellants. 
• The Appellant had submitted a reply, while the authority rejected all the contentions and proceed to take action under section 74(1) of the WBGST Act /CGST Act, 2017 read with rule 142(1) of WBGST/CGST Rules 2017 and the summary of the show cause notice will be issued electronically in FORM GST DRC-01.

Issue –

• Whether a writ against a show cause notice is maintainable or not?

Order –

• The Hon’ble High Court held that not only the authority committed a mistake in proceeding to reject all the contentions and then issued the show cause notice, equally the petitioner also committed a mistake in mentioning facts which were not required to be done pursuant the query raised by the authority.
• The manner in which the authority has proceeded to issue the notice dated 26th September, 2022 does not satisfy the legal requirements. Thus the appeal is allowed with a direction to redone the entire proceedings in an oppose manner.