High Court overturns order against duty-free shop, citing lack of evidence and jurisdiction.

The High Court set aside the impugned order dated 12.05.2015, ruling in favor of the petitioner, a Private Limited Company operating duty-free shops at international airports and seaports in India. The court found that the Enforcement Wing's notice lacked disclosure of tangible material supporting tax evasion allegations, hampering the petitioner's ability to defend itself. Citing previous judgments and the Supreme Court decision in a similar case, the High Court held that the notice lacked jurisdiction. The writ petition was allowed with no costs awarded.

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Issues:
1. Jurisdiction of the impugned order dated 12.05.2015.

Analysis:

The petitioner, a Private Limited Company operating duty-free shops at international airports and seaports in India, challenged an impugned notice issued by the Enforcement Wing without disclosing reasons for calling certain particulars. The petitioner's business operations were within customs barriers, and the inspection in question likely took place at their warehouse in Trichy. The Facilitation Licence imposed stringent conditions on maintaining stock registers and transferring goods. The notice lacked disclosure of tangible material supporting tax evasion allegations, hindering the petitioner's defense. Previous judgments under the Tamil Nadu General Sales Tax Act and Karnataka Sales Tax Act, following the Supreme Court's decision in a similar case, supported the petitioner's position. The High Court allowed the writ petition, setting aside the impugned order due to lack of jurisdiction, with no costs awarded.

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