2023 (6) TMI 1481 - HC - VAT / Sales Tax

Judicial Review Overturns Show Cause Notice Due to Potential Limitation Period Violation, Restores Writ Petition for Further Hearing

HC allowed an intra court appeal challenging a show cause notice, finding a potential jurisdictional error in the notice's issuance beyond the limitation ... Jurisdiction of the authority to issue the show cause notice beyond the extended period of limitation - violation of principles of natural justice - HELD THAT:- When there is a jurisdictional error, a writ is maintainable and the Writ Court will refuse to entertain a writ petition when the assessee seeks to challenge an order on disputed questions of fact. Equally, a writ petition is maintainable when a show cause notice has been issued by an incompetent authority or when there is violation of principles of natural justice. Therefore, it is required to be seen in the writ proceedings as to whether the show cause notice was issued within the period of limitation for which disputed question of fact need not be gone into. The writ petition should be heard and decided on merits on the question of the jurisdiction of the officer to issue the show cause notice. The Calcutta High Court allowed an intra court appeal challenging the rejection of a writ petition that contested a show cause notice dated 27th April 2021. The appellant raised a jurisdictional issue, specifically that the authority issuing the notice acted beyond the extended limitation period. The Court emphasized that 'when there is a jurisdictional error, a writ is maintainable,' distinguishing this from challenges based on disputed factual questions, which are not ordinarily entertained via writ. The Court noted that a writ petition is also maintainable if the notice was issued by an incompetent authority or if principles of natural justice were violated. Accordingly, the Court set aside the earlier order and restored the writ petition for merits hearing solely on the jurisdictional question of limitation, directing the respondent to file an affidavit-in-opposition and scheduling further proceedings.