Sbp Shinestar Private Limited Vs the Excise and Taxation Officer Cum State Tax Officer, Mohali Ward No 2 — Punjab & Haryana HC (2026) — LawSathi Research

Sbp Shinestar Private Limited Vs the Excise and Taxation Officer Cum State Tax Officer, Mohali Ward No 2 — Punjab & Haryana HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Impugned order dated 05.06.2025 (Annexure P-1) set aside; matter remitted to the concerned authority for fresh proceedings in accordance with law after affording the petitioner an opportunity of personal hearing; no coercive action to be taken henceforth and any recovery already made to abide the fresh orders.

Issue for consideration

Whether the impugned order dated 05.06.2025 raising/recovering a tax demand of Rs. 3,24,67,794/- for financial year 2023-2024 was liable to be quashed as violative of the principles of natural justice, having been passed without show cause notice and without an opportunity of personal hearing.

Court's answer

In view of the fair stand taken by the respondents, the matter is remitted back to the authority concerned and the impugned order dated 05.06.2025 (Annexure P-1) is set aside.

Ratio / Principle

The respondents shall proceed afresh in accordance with law after affording the petitioner an opportunity of personal hearing.

Key takeaways

No coercive action shall be taken henceforth in the matter, and any recovery already made shall abide by the fresh orders to be passed in accordance with law.ratio¶21
The writ petition stands disposed of accordingly, along with pending applications, if any.ratio¶22

Detailed headnote1 paragraphs

Punjab and Haryana High Court (CWP-16174-2026 (O&M), decided 02.07.2026, coram Ashwani Kumar Mishra, A.C.J. and Rohit Kapoor, J.) disposed of a writ petition challenging an order dated 05.06.2025 issued by the Excise and Taxation Officer-cum-State Tax Officer, Mohali-Ward No.2 for recovery of a tax demand of Rs. 3,24,67,794/- from M/s. SBP Shinestar Pvt. Ltd. for financial year 2023-2024. The petitioner contended the order was passed without show cause notice or personal hearing, violating natural justice; the State counsel did not dispute this and agreed to a remand. On the fair stand taken, the Court set aside the impugned order, remitted the matter to the authority concerned for fresh proceedings in accordance with law after affording an opportunity of personal hearing, directed that no coercive action be taken henceforth, and ordered that any recovery already made shall abide by the fresh orders. Petition disposed of accordingly, with pending applications also disposed of.

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-16174-2026 (O&M) Date of Decision: 2^nd July, 2026.

M/S. SBP SHINESTAR PVT. LTD. .…...Petitioner(s)

V/s

THE EXCISE AND TAXATION OFFICER-CUM-STATE TAX OFFICER, MOHALI-WARD NO.2, EXCISE AND TAXATION BHAWAN, MOHALI

.. ....Respondent(s)

CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE ROHIT KAPOOR

(Through Video Conference/Hybrid Mode)

Present Mr. Vikrant Kackria, Advocate, for the appellants/petitioners. (appeared through VC)

Ms. Samdisha Kaur, AAG, Punjab.

ASHWANI KUMAR MISHRA, A.C.J. (Oral)

1. The present Writ Petition has been filed seeking quashing of order dated 05.06.2025 (Annexure P-1), issued by the respondent for recovery of tax demand amounting to `3,24,67,794/- from the petitioner for the financial year 2023-2024.

2. It is submitted that the impugned penalty has been imposed upon the petitioner without issuing any show cause notice or affording any opportunity of personal hearing, therefore, the impugned action of the respondent amounts to a violation of principles of natural justice.

3. Learned State counsel, who has appeared on advance notice

SURESH KUMAR 2026.07.06 14:08 I attest to the accuracy and integrity of this document

CWP-16174-2026 (O&M)

Page 2 of 2

does not dispute the factual aspects that neither any show cause notice was issued to the petitioner, nor any opportunity of personal hearing was afforded to the petitioner. Learned State counsel, therefore, states that the matter can be conveniently remitted back to the concerned authority, for conducting the proceedings afresh in accordance with law after affording an opportunity of personal hearing to the petitioner.

4. In view of the fair stand taken by the respondents, this matter is remitted back to the authority concerned, and the impugned order dated 05.06.2025 (Annexure P-1) is set aside. The respondents shall proceed afresh in accordance with law after affording an opportunity of personal hearing. It is further provided that no coercive action henceforth shall be taken in the matter and any recovery already made shall abide by the fresh orders to be passed in accordance with law.

5. Petition stands disposed of accordingly.

6. Pending applications, if any, in this case are disposed of

accordingly.

[ASHWANI KUMAR MISHRA] ACTING CHIEF JUSTICE

[ROHIT KAPOOR] JUDGE

July 2, 2026

Ess Kay

Whether speaking / reasoned : Yes / No Whether Reportable : Yes / No

SURESH KUMAR 2026.07.06 14:08 I attest to the accuracy and integrity of this document