Order Date – 22 November 2023

Parties: Kumaran K.V Vs State Tax Officer (Intelligence), Join Commissioner (Int)

Facts –

• The Petitioner, Kumaran KV, is the Proprietor of ‘Kumar Motor Driving School’. On 12.07.2022, a search was conducted by the Joint Commissioner (Intelligence) and observed that the fees collected from persons availing the services of the petitioner was more than the threshold limit in a financial year, i.e., Rs.20 lakhs, as provided under Section 22 of the CGST/SGST Act 2017,
• As the petitioner has not taken registration under the CGST/SGST Act 2017 and the said amount was liable to be taxed at the rate of 18% along with penalty and interest. The petitioner was therefore issued a show cause notice dated 27.07.2022 and passed the impugned order.

Issue –

• Whether the order is passed without jurisdiction?

Order –

• The Single Bench of Hon’ble High Court observed that the order impugned cannot be said to be without jurisdiction and has not been passed in violation of the principles of natural justice. The Assessing Authority has the power to issue a show cause notice under Section 63 and pass the Assessment Order in accordance with the law in respect of the receipts received by the petitioner for providing services.
• Therefore, the said order cannot be said to be without jurisdiction. The petitioner was afforded the opportunity to file a reply and was also personally heard in the matter, and thereafter, the impugned order was passed.
• While exercising the writ jurisdiction, the Constitutional Court would confine only to the decision making process of the authority. If the decision has been taken as per the prescribed procedure, in observance of the principle of natural justice, even if the decision is rendered by the authority on an erroneous question of law and a statutory appeal is available against such an order, the Writ Court would not interfere with the decision and the remedy would be for filing the statutory appeal.
• Thus, the present writ petition cannot be entertained against the impugned assessment order, which has been passed in accordance with the law. The writ petition is dismissed.