TaxTMI 
TaxTMI 
2024 (12) TMI 927
X X X X Extracts X X X X
X X X X Extracts X X X X
....cates. For the Respondents: Mr. J. B. Mishra with Ms. Sangeeta Yadav, Advocates. ORAL JUDGMENT (PER M. S. SONAK, J.) INTERIM APPLICATION NO.3469 OF 2024 IN WRIT PETITION NO.4605 OF 2024 1. This Interim Application seeks to carry out the formal amendment in the cause-title to the Petition. 2. The amendment is allowed. The amendment to be carried out forthwith. Re-verification is dispensed with. 3. Interim Application is disposed of. WRIT PETITION NO. 4605 OF 2024 4. Heard learned counsel for the parties. 5. This is yet another case where the Petitioner has rushed to this Court to challenge a show cause notice dated 2nd August 2024 issued by the Directorate General of GST Intelligence ("DGGI"). 6. Mr. Shroff, learned seni....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... settlement of transactions intermediaries over digital networks up to Rs. 2,000/-. He submitted that the Petitioner, based upon this, was not liable to pay any GST on transactions up to Rs. 2,000/-. He submitted that a mere claim for input tax credit does not amount to any suppression or fraud for invocation of the provisions of section 74 of the CGST Act. 10. Mr. Shroff submitted that the Treatment Committee of the GST has already expressed a view that exemption is available to Merchant banks and not to others. He submitted that such a view contradicts the explanation to the exemption notification. He submitted that once the Treatment Committee has taken this view, it is impossible to expect the Joint Director, DGGI-the Adjudicating Auth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the statement of the petitioner's Finance Manager, which was recorded on July 1, 2024. These statements accept that the Petitioner is not registered as a Bank but a payment aggregator as per the RBI norms. 14. The show cause notice also refers to the agreement between the Petitioner and M/s HDFC Bank Limited, i.e. an acquiring bank. The Senior Vice President of HDFC Bank Limited has also made a statement, which is referred to in the show cause notice. This statement is also post the audit report relied upon by the Petitioner. This statement also indicates that HDFC Bank was executing all the functions ascribed to an acquiring bank to the transactions with the Petitioner for authorisation and processing the credit. 15. Based upon, in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....can always be raised in response to the show cause notice, and there is no reason to believe that such defences would not be considered and dealt with in accordance with the law. 18. The contentions based on the Treatment Committee's discussion and recommendations also do not affect the case. The Treatment Committee may have made certain recommendations. However, if, according to the Petitioner, such recommendations are contrary to the exemption notification or the explanation in the exemption notification, it is for them to urge this ground by providing sufficient factual basis to sustain their contentions but by alleging that the adjudicating authorities will never take some different view, no case is made out to insist for interference ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dings are halted or hurdles are created in them. 22. In the case of The Special Director and another Vs. Mohd. Ghulam Ghouse and another, (2024)3 SCC 440, the Hon'ble Supreme Court has held that unless the High Court is satisfied that the show cause notice was totally non est in the eyes of law for absolute want of jurisdiction of the authority and to investigate the acts, the writ petition should not be entertained, for mere asking and as a matter of routine. The writ petitioner should merely be directed to respond to the show cause notice and raise all defences and contentions that may be highlighted in the petition. Whether the show cause notice was found on any legal terms is a jurisdictional issue, the recipient can urge before the au....