TaxTMI 
TaxTMI 
2022 (10) TMI 1062
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....ised referring to provisions contained in Section 6 of the Rajasthan Goods and Services Tax Act, 2017 (hereinafter referred to as 'the Act of 2017') stating that in the absence of proper notification in that regard, the State authorities could not have issued show cause notice undertaking the assessment for imposition of taxes under the Act of 2017. Learned counsel for the petitioner would argue that in any case, cross empowerment as envisaged under Section 6 of the Act of 2017 is for the limited purpose of refund and not for initiating assessment proceedings. His next submission is that the issuance of impugned notice under Section 73 of the Act of 2017 is without compliance of mandatory provisions contained in Section 73 of the Act of 2017 and is otherwise in violation of the mandatory provisions contained in Section 73 (3) of the Act of 2017. When proceedings and notices were issued earlier prior to issuance of show cause notice impugned, the authority confined the subject matter solely with reference to tax liability on the logistic and handling charges and the assessee had replied to that limited aspect only. But later on, when impugned notice was issued, apart from the afore....
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....e and, therefore, on this ground, the writ petition may be entertained, it being a case of exception to general rule that normally at the stage of show cause notice, Court may not entertain. Per-contra, learned counsel for the respondents/revenue would argue that the respondents-authorities are empowered under the law to draw proceedings under Section 73 of the Act of 2017 and at present, the writ-petitioner has been given a show cause notice, which he may suitably reply on various grounds, which have been raised in the petition, but in any case, it is argued, in view of the order passed by the Division Bench of this Court in the case of Sanganeriya Spinning Mills Ltd. Versus Union of India, 2019 (28) G.S.T.L. 442 (Raj.), the issue of jurisdiction of the authority has no merit. He would submit that this has also been considered and decided by the Madras High Court in the case of Kuppan Gounder P.G. Natarajan Versus Directorate General of GST Intelligence, New Delhi, 2022 (58) G.S.T.L. 292 (Mad.). Learned counsel for the respondents/revenue would further submit that provisions contained in Section 73 (3) of the Act of 2017 are not mandatory and only on that count, show cause noti....
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....otices. Though there is no bar as such for entertaining the writ petitions at the stage of show-cause notice, but it is settled by a number of decisions of this Court, where writ petitions can be entertained at the show-cause notice stage. Neither it is a case of lack of jurisdiction nor any violation of principles of natural justice is alleged so as to entertain the writ petition at the stage of notice. The High Court ought not to have entertained the writ petition, more so, when against the final orders appeal lies to this Court. 31. The judgment of this Court in Union of India v. Guwahati Carbon Ltd. (2012) 11 SCC 651, relied on by the learned Senior Counsel for the appellants also supports their case. In the aforesaid judgment, arising out of Central Excise Act, 1944, this Court has held that excise law is a complete code in order to seek redress in excise matters and held that entertaining writ petition is not proper where alternative remedy under statute is available. When there is a serious dispute with regard to classification of service, the respondents ought to have responded to the show-cause notices by placing material in support of their stand but at the same time, t....
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....etc. 14. The reason why ordinarily a writ petition should not be entertained against a mere show-cause notice or chargesheet is that at that stage the writ petition may be held to be premature. A mere charge-sheet or show-cause notice does not give rise to any cause of action, because it does not amount to an adverse order which affects the rights of any party unless the same has been issued by a person having no jurisdiction to do so. It is quite possible that after considering the reply to the show-cause notice or after holding an enquiry the authority concerned may drop the proceedings and/or hold that the charges are not established. It is well settled that a writ lies when some right of any party is infringed. A mere show-cause notice or charge-sheet does not infringe the right of any one. It is only when a final order imposing some punishment or otherwise adversely affecting a party is passed, that the said party can be said to have any grievance. 15. Writ jurisdiction is discretionary jurisdiction and hence such discretion under Article 226 should not ordinarily be exercised by quashing a show-cause notice or chargesheet. No doubt, in some very rare and exceptional cas....
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....n terms of Circular 1 of 2017, which the petitioner relies again by way of investigation and intelligence gathering is not precluded. 4. The basic ground on which Section 6 has been challenged is that Section 6(1) is arbitrary. It is contended that the provisions curtail and severely limit the rights to claim the input credit and transitional credit. In this regard, the learned Counsel also submitted that the show cause notice in this case transgressed the provisions of law, especially Section 6 and 73. 5. This Court is of the opinion that challenge to the provisions i.e. Section 6(1), has not been made at all. The GST Act, which was enacted pursuant to 101st amendment to the Constitution, completely changed the tax structure in the country and unified the tax levied by the Centre and State for the first time, in terms of principles of taxation as well as the common provisions. The constitutional authority such as the Goods and Services Tax (GST) Council was created, to lay down the policy which are binding on all States and the Union, which are authorised to collect the levies under the GST. The Act also unifies levies, such as Central Excise Service Tax and State VAT Enactmen....