AI Structured Summary
Not yet generated for this judgment
Judgment
By means of this writ petition, petitioner has sought the following relief:-
“i)Issue a writ, order or direction in the nature of certiorari, quashing the impugned Show Cause Notice dated 19-08-2026 issued by respondent under Section 74(1) read with Section 74(5) of the CGST/ SGST Act, 2017 (Annexure No.8 page no.76 to 91 to this writ petition).”
Learned counsel for the petitioner submits that show-cause notice under Section 74(1) of the Uttarakhand Goods and Services Tax Act, 2017 (for short “the Act”) is issued to National Book Distributors, however, sale made by another entity, namely, National Book House has been added in the volume of sale made by the petitioner, even though the another entity is not registered under the Act.
It is further contended that show-cause notice is barred by limitation, as transactions which were made upto Financial Year 2020-21, have been made subject matter of the show-cause notice.
Ms. Puja Banga, learned Standing Counsel appearing for the State, however, submits that the proprietor Mr. Pankaj Jain is running two firms [(i) National Book Distributors and (ii) National Book House] and both the firms are running from the same premises. She further points out as per her instructions National Book House is a sham firm, which has been created for the purpose of suppression of turnover. She refers to sub-section (10) of Section 74 of the Act for contending that order under sub-section (9) can be issued by the proper officer within five years from the due date for furnishing of annual return for the financial year to which tax not paid or short paid or input tax credit wrongly availed or utilized relates to or within five years from the date of erroneous refund.
We are not inclined to interfere in the matter at this stage as petitioner has the opportunity to have his say before the competent authority by filing reply. It is also indicated in show-cause notice that petitioner shall also be entitled for personal hearing.
Law is well-settled that challenge to a show-cause notice can be made only if the authority issuing such notice is not competent for the purpose.
It is not the case of petitioner that the authority who has issued the notice is not competent as per provisions of the Act.
Thus, we dispose of writ petition with liberty to petitioner to give reply to the show-cause notice. The petitioner shall be at liberty to raise all his contentions, which shall be dealt with as per law.
Pending application, if any, also stands disposed of.