K Ramchandra Rao Transmission and Projects Private Limited VS Union Of India

Petitioner has sought multiple reliefs through this petition. Firstly, they request the issuance of a Writ of Certiorari to quash a specific letter dated August 8, 2022, issued by the Assistant Commissioner, Central GST & Central Excise, Patna (West) Division. This letter pertains to the suspension of the petitioner company’s registration due to nonpayment of interest. Additionally, they seek to quash a Show Cause Notice for cancellation of Registration dated July 7, 2022, issued under Rule-22(1)/SubRule-(2A) of Rule-21A of CGST Rules. They argue that the action taken by the respondent is in violation of principles of natural justice and contrary to the procedure prescribed under the GST Act because there is neither an adjudication order nor a proper Show Cause Notice.

Secondly, they request the issuance of a Writ of Mandamus, commanding the respondents to initiate proceedings under the GST Act for adjudication of liability of interest in accordance with the law. They emphasize the necessity of issuing a proper Show Cause Notice to the petitioner company in compliance with principles of natural justice.

Thirdly, they seek a Writ of Mandamus to command the respondents not to initiate or take any coercive measures for the recovery of any amount of interest until the matter attains finality as per the prescribed law.

Lastly, they express openness to any other relief or reliefs deemed appropriate by the court. Overall, the petitioner seeks redressal for what they perceive as unjust actions by the respondents, emphasizing adherence to legal procedures and principles of natural justice.

The petitioner in this case has prayed for several reliefs through a writ petition. Firstly, they seek the quashing of a letter dated 08.08.2022 issued by the Assistant Commissioner, Central GST & Central Excise, Patna (West) Division, which suspended the registration of the petitioner company due to non-payment of interest. They also request the quashing of a Show Cause Notice for the cancellation of registration dated 07.07.2022, arguing that it lacks proper adjudication order or notice, violating principles of natural justice and GST Act procedures. Additionally, they seek a writ mandating the respondents to initiate proceedings for adjudicating interest liability in accordance with the law and principles of natural justice, as well as a writ to prevent the initiation of coercive measures for interest recovery until the matter reaches finality. Lastly, they ask for any other relief deemed appropriate in the circumstances.

The petitioner points out that despite the issuance of a Show Cause Notice on 07.07.2022, no order has been passed by the Superintendent, Patna Special, Central, Bihar. They emphasize that although the notice aims to cancel registration, no order has been issued to that effect, yet the petitioner’s registration stands suspended. They argue that according to Rule 22(3) of the Central Goods and Services Tax Rules, 2017, the suspension should only last for 30 days. They cite a judgment from the High Court of Delhi dated 31.01.2022, titled Shakti Shiva Magnets Private Limited Vs. Assistant Commissioner & Ors., in support of their contention.

On the other hand, Dr. K.N. Singh, representing the Revenue, opposes this argument and refers to a judgment from the High Court of Jharkhand at Ranchi dated 18.10.2022, in the case of M/s RSB Transmissions (India) Limited.

The petitioner in this case has prayed for several reliefs regarding actions taken against their company by the Assistant Commissioner of Central GST & Central Excise, Patna (West) Division. Firstly, they seek a writ of certiorari to quash a letter dated 08.08.2022, which suspended the petitioner’s company registration due to nonpayment of interest, as well as two show cause notices, one for registration cancellation and another without a specific date. They argue that these actions violate principles of natural justice and GST Act procedures. Secondly, they request a writ of mandamus to compel the respondents to initiate proceedings for interest adjudication with proper notice and adherence to natural justice principles. Thirdly, they ask for a writ to prevent coercive recovery measures until the matter is legally finalized. Finally, they request any other relief deemed appropriate.

It’s acknowledged that after the issuance of a show cause notice on 07.07.2022, no order has been passed, yet the petitioner’s registration remains suspended. The petitioner argues that according to Rule 22(3) of the Central Goods and Services Tax Rules, 2017, suspension should only last for 30 days. They cite a Delhi High Court order in support of their argument. However, the respondent, represented by Dr. K.N. Singh, relies on a Jharkhand High Court judgment, suggesting that the matter should be decided by the adjudicatory authority.

Additionally, the petitioner is willing to deposit 25% of the demanded interest, but this offer is rejected by the revenue department based on a precedent set by M/s RSB Transmissions (India) Limited. The petitioner’s counsel requests expedited adjudication of their request.

Ultimately, the case is disposed of with mutual agreement on the following terms: the petitioner will appear before the Superintendent of CGST, Phulwarisharif Range, Patna (West) Division, on 03.01.2023, who will decide on the matter within one week based on the show cause notice. The petitioner retains the liberty to pursue further legal remedies as needed.

Download PDF:
K Ramchandra Rao Transmission and Projects Private Limited

For Reference Visit:
Patna High Court

Read Another Case Law:
GST Case Law