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TMI Blog2024 (11) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... etails of outward supplies under Section 37 of the CGST Act. There is also an allegation that the facts have been suppressed with the intention to evade the payment of GST. It is further stated in the show cause notice that if the investigation had not been conducted, evasion of GST would not have come to light. The respondents in the show cause notice have invoked the extended period of limitation based on the allegations of suppression of facts and misstatement with an intention to evade the payment of GST from July 2017 to March 2022. The show cause notice also deals with the onus of proof and its extent of compliance for the purpose of Section 15 (3) (b) of the CGST Act. The issue of whether there is a suppression of facts or misstateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered under Section 74 of the Central Goods and Services Tax Act (CGST), State Goods and Services Tax Act (SGST) and Integrated Goods and Services Tax Act (IGST). The said show cause notice further directs the petitioner to show cause why interest under Section 50 of the CGST Act and the SGST Act should not be demanded and recovered in addition to the penalty under Section 74 of the CGST Act, SGST Act and Section 20 of the IGST Act. By this show cause notice, the issue pending before various State authorities, namely Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Haryana, Uttar Pradesh etc. has been centralised and referred to respondent no. 3 for adjudication. 2. Mr. Ochani, learned counsel for the respondents, raised a preliminary ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October 2024 in support of his submission. 4. We have heard the learned senior counsel for the petitioner and the learned counsel for the respondents. 5. The show cause notice is issued for the determination of the value of the supply as per Section 15 (3) (b) of the CGST Act, 2017, which provides that the value of the supply shall not include any discount given after the supply has been effected subject to fulfilment of conditions specified therein. At the outset, we wish to state that the show cause notice is issued after the investigation was initiated into the petitioner's transactions based on intelligence. During the course of the investigation, statements of various officers of the petitioner were recorded, which have been relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es adjudication on facts. Furthermore, compliance with conditions of Section 15 (3) (b) would also include inviting this Court to enter the arena of facts which we are afraid we cannot examine. In the show cause notice, we could not find any reference to Circular No. 212/6/2024 dated 26 June 2024, based on which the petitioner has submitted that the impugned show cause notice is issued. Therefore, the contention of the petitioner that the show cause notice has been issued only on the ground of retrospective application of the Circular is also ill-founded. There is no challenge to the said circular in the prayer clause of the petition. 8. Mr. Ochani, learned counsel for the respondents, is justified in submitting that if the petitioner is ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon ble Supreme Court has held that unless the High Court is satisfied that the show-cause notice was totally non-est in the eyes of the law for absolute want of jurisdiction of the authority even to investigate the facts, writ petitions should not be entertained for mere asking and as a matter of routine. The writ petitioner should invariably be directed to respond to the show cause notice and raise all defences and contentions highlighted in the writ petition. Whether the show cause notice was founded on any legal premises is a jurisdictional issue the recipient can urge before the authority issuing the notice. Such issues can also be adjudicated by the authority initially issuing the notice before the aggrieved party could approach th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court or tribunal to correct errors of fact and does not, by assuming jurisdiction under Article 226, trench upon an alternative remedy provided by statute for obtaining relief. Where it is open to the aggrieved petitioner to move another tribunal, or even itself in another jurisdiction for obtaining redress in the manner provided by a statute, the High Court normally will not permit, by entertaining a petition under Article 226 of the Constitution, the machinery created under the stature to be bypassed, and will leave the party applying to it to seek resort to the machinery so set up. 13. The learned counsel for the petitioner relied upon the decision in the Delhi High Court in the case of JSW Limited (supra). In our view, it is an interim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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