2023 (7) TMI 912 - HC - GST

Validity of SCN - Levy of IGST - reverse charge mechanism - SCN ultra vires to Integrated Goods and Services Tax Act, 2017 and Articles 19(1)(g) and Article 265 of the Constitution of India or not - HELD THAT - The issue involved in this writ petition stands covered by the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Mohit Minerals Private Limited reported in 2022 (5) TMI 968 - SUPREME COURT where it was held that The IGST Act and the CGST Act define reverse charge and prescribe the entity that is to be taxed for these purposes. The specification of the recipient - in this case the importer - by Notification 10/2017 is only clarificatory. The Government by notification did not specify a taxable person different recipient prescribed in Section 5(3) of the IGST Act for the purpose of reverse charge. Petition disposed off.

Summary

Issues involved:
The petition challenges the order of the 3rd Respondent in the Show Cause Notice and seeks to quash it as ultra vires to the Integrated Goods and Services Tax Act, 2017, and Articles 19(1)(g) and Article 265 of the Constitution of India.

Judgment Details:

Issue 1 - Challenge to the Show Cause Notice:
The writ petition challenges the order of the 3rd Respondent in the Show Cause Notice, dated 15.03.2021, on grounds of being ultra vires to the Integrated Goods and Services Tax Act, 2017, and constitutional provisions. The petition seeks to quash the said notice.

Issue 2 - Precedent and Legal Standing:
The learned counsel for both the petitioner and the Respondents agreed that the issue in this writ petition is covered by the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Mohit Minerals Private Limited. This decision was followed by the Division Bench of the Madras High Court in a previous batch of cases. The relevant portions of the order were extracted to support the conclusion that the issue is no longer res integra and is decided in favor of the petitioners.

Conclusion:
In light of the precedent set by the Supreme Court and followed by the Division Bench of the Madras High Court, the writ petition stands allowed with no costs. The decision in the previous batch of cases is applied to the present petition, leading to its disposal. Consequently, the connected miscellaneous petition is also closed.

This summary provides a detailed breakdown of the issues involved in the judgment, the legal standing established by precedent, and the final conclusion reached by the court.