2023 (10) TMI 94 - HC - GST

Tax Dispute Resolution: Petitioners Granted Refund Application Window and Respondents Ordered to Complete Show Cause Proceedings Within 6 Months

HC received a tax-related petition involving a show cause notice and Rs. 3 crore deposit. The court disposed of the petition, directing respondents to ... Refund of amount deposited by the petitioners with the respondent-revenue, that be taken into consideration in any proceedings and while passing appropriate orders on such proceedings - HELD THAT:- No opinion expressed on any of the rival contentions as may arise. Suffice it to observe that if the petitioners intend to make such an application, let the same be made within two weeks from today, and on such application being made, the respondents may consider such application and pass appropriate orders on the same. Considering the peculiar facts and circumstances of the case, the show cause notice be adjudicated within six months from the date on which the final reply is filed. Petition disposed off. Issues involved:The issues involved in the judgment are the issuance of a show cause cum demand notice, preliminary reply to the show cause notice, deposition of an amount with the respondent-revenue, and the intention to file a detailed reply and make an application for refund.Show Cause Cum Demand Notice:The respondents pointed out the issuance of a show cause cum demand notice dated 16 March 2023 to the petitioners during the pendency of the petition. The petitioners submitted a preliminary reply to the show cause notice dated 20 June 2023. The court decided that further adjudication of the petition is not necessary as all contentions of the petitioners in the petition can be agitated during the adjudication of the show cause notice.Deposition of Amount with Respondent-Revenue:An amount of Rs. 3 crores was deposited by the petitioners with the respondent-revenue, which the petitioners requested to be taken into consideration in any proceedings and while passing appropriate orders. The petitioner intends to make an application for a refund of the deposited amount, which was made in the year 2020. The court did not express any opinion on the rival contentions but instructed the petitioners to make the refund application within two weeks.Adjudication of Show Cause Notice:The court emphasized that the show cause notice must be taken to its logical conclusion within six months from the date on which the final reply is filed. All issues of law are kept open to be asserted as and when necessary. The court directed the respondents to consider the application for refund and pass appropriate orders on the same once it is submitted.Disposition:The petition was disposed of with no costs, and the court outlined the timeline for the adjudication of the show cause notice and the consideration of the refund application.