2020 (11) TMI 1017 - HC - VAT and Sales Tax

Challenge to SCN before completion of enquiry and the proceedings - interference to SCN at pre-mature stage - HELD THAT - As there is nothing which precludes the Petitioner from raising the contentions in this Writ Petition in the reply to be submitted to the Third Respondent, who is bound to deal with the same before coming to any ultimate conclusion, there is no necessity for this Court to interfere at this pre-mature stage of the matter. It is incumbent upon the Petitioner to submit his explanation with all supporting documents and comply with the requirements as sought in the impugned order by 31.12.2020. The Third Respondent shall, after affording full opportunity of hearing, duly consider the explanation of the Petitioner, deal with the each of the contentions raised and pass reasoned orders on merits and in accordance with law and communicate decision taken under written acknowledgment. Petition dismissed.

Summary

Issues:
Challenge to show cause notice before completion of enquiry.

Analysis:
The judgment concerns a Writ Petition challenging a show cause notice issued by the Third Respondent. The legal position, as reiterated by the Hon'ble Supreme Court of India in various cases, establishes that a show cause notice cannot be challenged before the completion of the enquiry. The Court emphasized that proceedings cannot be interfered with until they reach a logical conclusion. The Petitioner is required to submit an explanation with supporting documents by a specified deadline. The Third Respondent must consider the explanation, address all contentions raised, and issue reasoned orders in accordance with the law. If the decision has adverse civil consequences, the Petitioner can challenge it before the appropriate forum. The Court clarified that it did not express any opinion on the merits of the controversy. Ultimately, the Writ Petition was dismissed with the mentioned clarifications, and the connected Miscellaneous Petition was closed without imposing any costs.