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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S.SONAK, JITENDRA JAIN
Blossom Industries Limited – Appellant
Versus
Union of India through the Hon’ble Ministry of Finance, New Delhi – Respondent
JUDGMENT :
M.S. SONAK, J.
1. Heard learned counsel for the parties.
2. The challenge in this Petition is to the show cause notice bearing No.DGGI/SZU/36-158/2022-23 dated 30 January 2023 (Exhibit-A) issued by the Directorate General of Goods & Services Tax Intelligence, Surat Zonal Unit.
3. Mr. Nankani, the learned Senior Advocate for the Petitioner, submitted that the Petitioner has entered into a licence agreement for the manufacture and sale of beer with the 4th Respondent (UBL). He submitted that the impugned show cause notice, notwithstanding the terminology used therein, proposes a tax on the supply of alcoholic liquor for human consumption. He further submitted that both under Section 9(1) of the Central Goods and Services Tax Act, 2017 (“CGST Act 2017”) and the Constitutional Scheme, no CGST or IGST could be levied on the sale of alcoholic liquor for human consumption by any authority other than the State Authority. Accordingly, he submitted that the impugned show cause notice is ex-facie without jurisdiction, being beyond the legislative and, consequently, the executive competence of the Central Government.
4. Mr. Nankani submitted that the Authority for Advance Ruling, in the
The court emphasized the necessity of exhausting statutory remedies before judicial intervention, stating that jurisdictional questions must be resolved through investigation by the appropriate autho....
Writ petitions challenging show cause notices should not be entertained unless exceptional circumstances exist; petitioners must exhaust statutory remedies available under tax laws.
The jurisdiction of CAG is limited to government departments, and show cause notices based on its audit findings are valid unless issued improperly.
The jurisdiction under the Central Goods and Services Tax Act prohibits State GST authorities from initiating parallel proceedings once Central GST proceedings have commenced on the same subject matt....
Dual proceedings concerning the same subject matter initiated by State GST authorities after Central GST proceedings are barred under Section 6(2)(b) of the CGST Act.
The main legal point established in the judgment is the mandatory and imperative nature of the show cause notice requirement under Section 74(1) of the JGST Act and the need for specific charges in t....
Proper service of notices is essential for upholding natural justice, and jurisdiction must be established based on the correct address of the party involved.
Multiple Show Cause Notices can exist for the same tax period under GST if they pertain to different subjects, reinforcing the absence of a bar under the GST regulations.
The court emphasized that while an alternative remedy is available, the High Court has the discretion to entertain a writ petition. The court also highlighted that the availability of an alternative ....
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