9911796707
TMI Blog2024 (12) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... e record shows that the Petitioner was audited, and an audit report was prepared on September 26, 2023. However, the impugned show-cause notice refers to the Petitioner s response at the pre-show-cause stage, after the audit report was prepared. Clause 3.5 of the show-cause notice refers to the statement of the petitioner's Finance Manager, which was recorded on July 1, 2024. These statements accept that the Petitioner is not registered as a Bank but a payment aggregator as per the RBI norms. At this stage, what is relevant is that the show cause notice is based upon findings of investigations that were ordered into the matter. No doubt, such findings are necessarily tentative. The scope of judicial review is extremely narrow at the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court is satisfied that the show cause notice was totally non est in the eyes of law for absolute want of jurisdiction of the authority and to investigate the acts, the writ petition should not be entertained, for mere asking and as a matter of routine. The writ petitioner should merely be directed to respond to the show cause notice and raise all defences and contentions that may be highlighted in the petition. It is satisfying that no case is made out to interfere with the impugned show cause notice - petition dismissed. - M.S. SONAK JITENDRA SHANTILAL JAIN, JJ. For the Petitioner: Mr. Darius Shroff, Senior Advocate with Mr. Prasad Paranjape, Mr. Sanjeev Nair and Mr. Kevin Gogri i/by M/s Lumiere Law Partner, Advocates. For the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 74, which defines suppression for the purposes of section 74 and the invocation of an extended period of limitation. 8. Mr. Shroff submitted that the Petitioner has suppressed nothing, and the show cause notice also does not allege the precise nature of suppression. He submitted that under such circumstances, issuing the impugned show cause notice by invoking the extended limitation period is an exercise in excess of jurisdiction. Therefore, he submits that the impugned show cause notice is without jurisdiction and must be interfered with at this stage. 9. Mr. Shroff submitted that in terms of the recommendations of the Treatment Committee of GST Council exempted all payments involved in settlement of transactions intermediaries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all for the invocation of an extended limitation period. He submits that all the contentions can be raised in response to the show cause notice. He submitted that there is no jurisdictional error and the contentions now raised would involve investigations into factual matters. Therefore, he submitted that this petition may not be entertained. 12. The rival contentions are now fall for our determination. 13. The record shows that the Petitioner was audited, and an audit report was prepared on September 26, 2023. However, the impugned show-cause notice refers to the Petitioner s response at the pre-show-cause stage, after the audit report was prepared. Clause 3.5 of the show-cause notice refers to the statement of the petitioner's Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the audit report had flagged certain issues which the Petitioner then admitted. Section 65 (7) of the CGST Act, 2017, which deals inter-alia with audit, provides that where the audit conducted under sub-section (1) results in the detection of tax not paid, or short paid or erroneously refunded or input tax credit wrongly availed or utilised, the proper Officer may initiate action under sections 73 or 74. 17. Therefore, based on the premise that the audit had cleared the Petitioner or that allegedly complete disclosures were made during the audit, no case is made to interfere with the impugned show cause notice or the invocation of section 74 of the CGST Act. In any event, the contentions can always be raised in response to the show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the reasoning in the said decision, we are not inclined to interfere with the impugned show cause notice in this case. 21. In the case of Whirlpool Corporation Vs. Registrar of Trade Marks, Mumbai and others, (1998) 8 SCC 1 , the Hon ble Supreme Court has explained that the writ petition may be entertained at the show cause notice stage, where the Petitioner seeks enforcement of any fundamental rights, where there is violation of the principles of natural justice or where the order or the proceedings are wholly without jurisdiction. We are satisfied that under all these circumstances are not made out in this case, and the Petitioner is only bent upon taking a chance to see if the proceedings are halted or hurdles are created in them. 22. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
