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TMI Blog2024 (8) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 is directed against order dated 15.04.2024 passed in WP No. 104541/2021, by which petitioner's challenge to demand-cum-show-cause dated 23.09.2021 calling upon the petitioner to show-cause as to why demand for GST at Rs. 16,23,82,230/- should not be levied, is rejected. 2. Parties would be referred to as they stood before learned Single Judge. Appellant herein was the petitioner before learned Single Judge. 3. Brief facts of the case are that, the petitioner is a company engaged in manufacture and sale of white crystal sugar and its allied products. It is stated that in the process of manufacture of sugar, a product known as Extra Neutral Alcohol ['ENA'] which contains 95% of alcohol emerges. ENA is also used for manufacture of alcoholi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant, Sri. G.S. Hulmani, learned counsel for respondent No. 1 Sri. M.B. Kanavi, learned CGSC for respondent No.2, Sri. M.M. Khannur, learned AGA for respondent No. 3 and perused writ appeal papers. 5. Learned counsel Sri. Manamohan P.N. for the appellant/petitioner would submit that impugned demand-cum-show-cause notice dated 23.09.2021 is one without jurisdiction, since there is no notification authorizing levy of GST to ENA supplied for human consumption. Learned counsel would further submit that the petitioner supplied entire ENA to Karnataka State Beverages Corporation Limited, which is a manufacturer of alcohol for human consumption. He further submits that since ENA supplied to Karnataka State Beverages Corporation is for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that 'denatured of any strength' would mean that ENA supplied to industries and not for human consumption. Referring to notification dated 28.06.2017 (Annexure-R1), learned counsel would submit that it would not provide GST demand for ENA supplied to human consumption. Therefore, he submits that challenge to show-cause notice would be maintainable, when the petitioner establishes that the authorities have no power to issue demand notice or show-cause notice and when it is shown that show-cause notice is a nullity. He further submits that in terms of Section 9 of the GST Act, in the absence of notification prescribing rate of GST, respondent No. 1 would not get jurisdiction or competence to demand or issue show-cause notice. Thus, he prays ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in this appeal is as to, whether the impugned order passed by the learned Single Judge rejecting challenge to the demand-cum-show-cause notice dated 23.09.2021 requires interference at the hands of this Court? Answer to the above point would be in the "negative" for the following reasons: 9. Normally, writ Court would not entertain writ challenging show-cause notice. Show-cause notice would not affect the rights of the parties. No person would be aggrieved on receiving show-cause notice. A person would be aggrieved only when show-cause notice is translated into adverse order. It is not that show-cause notice cannot be challenged at all. Show-cause notice could be challenged, if one establishes that authorities which issued show-cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be careful to see that the statutory functionaries specially and specifically constituted for the purpose are not denuded of powers and authority to initially decide the matter and ensure that ultimate relief which may or may not be finally granted in the writ petition is accorded to the writ petitioner even at the threshold by the interim protection, granted." 11. Keeping in mind the principles laid down by the Hon'ble Apex Court in the aforesaid judgment, facts of the present case are to be examined. 12. Learned counsel for the petitioner has put in all his efforts to make out a case that the demand-cum-show-cause notice dated 23.09.2021 issued demanding GST for ENA supplied by the petitioner is non-est and without jurisdiction. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to include or exclude any item from GST. It is only GST Council, which could recommend inclusion or exclusion of any item from GST and on the basis of recommendation of Council, Central Government has to issue notification. 14. By following the principles laid down by the Hon'ble Apex Court in the case of Mohd. Ghulam Ghouse (supra), we decline to entertain writ appeal and we relegate the petitioner to approach the authorities by replying to the demand-cum-show-cause notice dated 23.09.2021. It is open for the petitioner to raise all contentions raised here before the authorities and authorities shall consider the same and pass appropriate orders in accordance with law. 15. Hence, we proceed to pass the following: ORDER a) Writ Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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