2026 (4) TMI 1148

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the assessment order passed by the respondent dated 17.11.2025 and 01.12.2025. The impugned orders were challenged on the ground of classification and jurisdiction. It is the case of the writ petitioner that the respondent had conducted inspection on the place of business, on 13.08.2024. Based on such inspection, the respondent had issued show cause notice and passed impugned orders for the assessment year 2020-21, on 17.11.2025 and on 01.12.2025. The writ petitioner, a private hospital, is providing health care service and running a retail medical shop in the hospital premises. The writ petitioner has registration and administrative control of Central GST Authorities and the State authority is having jurisdiction to assess the registrati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t is not decided by the learned Writ Court and also not decided the issue with regard to the invoking of Section 74 of the CGST Act in the impugned assessment proceedings for absence of Mens rea -intention to evade tax. 4.Per contra, the learned Additional Government Pleader appearing for the respondent would submit that the writ petitioner has been registered under Central authorities, insofar as enforcement action is concerned, both under the GST regime, both Central and State has power to take enforcement action. In view of the same, the State authorities have initiated the enforcement action and passed orders. If at all any wrong conclusion on the aspect of suppression is arrived at so as to invoke Section 74, the petitioner is suppo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion 50 and a penalty equivalent to the tax specified in the notice. 8.As far as the classification is concerned, there are disputed questions of facts involved, the issue pertaining to classification cannot be adjudicated under Writ Jurisdiction. In this regard, it is relevant to refer the judgment of the Hon'ble Supreme Court reported in 2025 SCC Online SC 1700, in Armour Security (India) Ltd., v. Commissioner, CST, Delhi East Commissionerate and another, wherein it has been held that intelligence based enforcement action can be initiated by any one of the Central or the State Tax administrations despite the taxpayer having been assigned to the other administration. By applying the ratio laid down in the above decision, the learned ....