GST transition and repealed VAT law: show cause notice could not survive after the constitutional shift.

A show cause notice issued under the Madhya Pradesh Value Added Tax Act, 2002 was invalid after the VAT regime had ceased to operate on account of the GST transition. The Court applied the constitutional changes brought by the Constitution (101st Amendment) Act, 2016, including Article 246-A and Section 19 of the transition framework, and followed the governing Supreme Court ruling on the status of existing VAT legislation. On that basis, the notice under the repealed VAT provision could not be sustained and was quashed.

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Issues: Whether a show cause notice issued under Section 52 of the Madhya Pradesh Value Added Tax Act, 2002 could validly be after the VAT regime had ceased to operate on account of the constitutional and GST transition.

Analysis: The challenge turned on the effect of the Constitution (101st Amendment) Act, 2016, including Section 19 and Article 246-A, and the consequent status of existing VAT legislation after the GST framework came into force. The Court applied the governing Supreme Court ruling on the transitional scheme and accepted that the legal issue had already been concluded. On that basis, the notice under the repealed VAT provision could not be sustained.

Conclusion: The show cause notice under Section 52 of the Madhya Pradesh Value Added Tax Act, 2002 was quashed and the petition was allowed.

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