Disposed

M/S Maruti Nandan Minetech Pvt. Ltd. v. Union of India

Rajasthan HC18 Nov 2024CW/17415/2024

Case brief

AI extract

What is this about?

Courts disposed two D.B. writ petitions challenging a GST show-cause notice, FAQs, and Council minutes. The Court accepted prayer to keep the notification's validity open, granting liberty to file reply within four weeks for further proceeding.

What did the court decide?

Liberty granted to petitioners to file reply to impugned show-cause notice; writ petitions disposed keeping validity of Notification open.

M/S Maruti Nandan Minetech Pvt. Ltd. Vs Union of India — GST and Indirect Tax | Rajasthan HC (2024)

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[2024:RJ-JP:47199-DB]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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D.B. Civil Writ Petition No. 17415/2024

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M/s Maruti Nandan Minetech Pvt. Ltd, Flat No. 1230, 12^Th Floor, Mojika Ultima Phase-1, Jagatpura, Goner, Jaipur, Rajasthan, India, 303905, Through Its Director Shashi Kant Bahad S/o Shri Hari Ram Bahad, Aged About 66 Years, R/o Hariram Bahad Marg, Polo Ground, Ward No. 6, Sikar, Po Sikar, Rajasthan- 332001.

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----Petitioner

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Versus

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Union Of India, Ministry Of Finance (Department Of Revenue) Room No. 46, North Block, New Delhi - 110001 Through Its Secretary (Revenue)

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Tax Research Unit, Through Its Commissioner, Central Board Of Indirect Taxes And Customs, Government Of India, Ministry Of Finance, Department Of Revenue, North Block, New Delhi - 110001

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Central Board Of Indirect Taxes And Customs, Through Its Chairperson, Government Of India, Ministry Of Finance, Department Of Revenue, North Block, New Delhi - 110001

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The Goods And Service Tax Council (Gst Council), Office Of The Gst Council Secretariat, 5Th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-110001, Through Its Chairperson

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State Of Rajasthan, Finance Department (Tax Division), 1St Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005 Through Its Joint Secretary

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Joint Commissioner, Commerical Taxes Department, Circle-C, Enforcement Wing-III, New Building, Kar Bhawan, Ambedkar Circle, Jaipur, Rajasthan 302005

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Deputy Commissioner (State Tax), Ward-I, Circle-C, Enforcement Wing-III, Kar Bhawan, Ambedkar Circle, Jaipur, Rajasthan 302005

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----Respondents

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D.B. Civil Writ Petition No. 17416/2024

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M/s Singhania Corporation Pvt. Ltd, G-05, Bharat Govind Residency, Plot No.1 Sector-5, Chitrakoot, Vaishali Nagar,

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(2 of 4)

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[2024:RJ-JP:47199-DB]

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[CW-17415/2024]

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Jaipur, Rajasthan, India, 302021 Through Its Director Smt. Mamta Devi W/o Manoj Singhania, Aged About 48 Years, R/o Singhania House, Bajaj Road, Near Surya Mandir, Ward No. 9, Sikar, Rajasthan- 332001

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----Petitioner

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Versus

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Union Of India, Ministry Of Finance (Department Of Revenue) Room No. 46, North Block, New Delhi - 110001 Through Its Secretary (Revenue)

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Others-Central, Through Its Commissioner, Central Board Of Indirect Taxes And Customs, Government Of India, Ministry Of Finance, Department Of Revenue, North Block, New Delhi 110001

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Central Board Of Indirect Taxes And Customs, Through Its Chairperson, Government Of India, Ministry Of Finance, Department Of Revenue, North Block, New Delhi 110001

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The Goods And Service Tax Council (GST Council), Office Of The GST Council Secretariat, 5Th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-110001, Through Its Chairperson

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State Of Rajasthan, Finance Department (Tax Division), 1st Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005 Through Its Joint Secretary

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Joint Commissioner, Commercial Taxes Department, Circle-C, Enforcement Wing-III, New Building, Kar Bhawan, Ambedkar Circle, Jaipur, Rajasthan 302005

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Assistant Commissioner (State Tax), Ward-I, Circle-C, Enforcement Wing-III, Kar Bhawan, Ambedkar Circle, Jaipur, Rajasthan 302005

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----Respondents

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For Petitioners : Mr. Sanjay Jhanwar, Sr. Adv. assisted by Mr. Rahul Lakhwani and Mr. Advait Shah

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For Respondents : Mr. Sandeep Taneja, AAG with Mr. Nishant Saraf

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[2024:RJ-JP:47199-DB]

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[CW-17415/2024]

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(3 of 4)

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Mr. Akshay Bhardwaj on behalf of Mr. R.D. Rastogi, ASG Mr. Samaksh Dasot

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HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

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Order

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18/11/2024

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AVNEESH JHINGAN, J [ORAL]:-

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These two writ petitions are decided by this order as facts and issues involved are similar. The facts are being taken from DB C.W.P. No.17415/2024.

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This petition is filed challenging reply dated 14.05.2019 bearing F. No.354/32/2019-TRU to the question No.7 of Frequently Asked Questions (for short 'FAQs'). The agenda of the Goods and Services Tax Council (for short 'the Council') in para Nos.15 & 16 of the minutes to the 32^nd Meeting held on 10.09.2019 is also under challenge. There is a prayer for reading down the Notification No.4/2018-Central Tax (Rate) dated 25.01.2018 to the extent that the same only provides the time/event when the liability to pay GST arises in case of supply of the alleged service of transfer of development rights. The quashing of the impugned show-cause notice dated 31.07.2024 is sought for.

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The grievance is that the impugned notice has been issued in view of the binding effect of answers given to the FAQs and in view of the minutes of the Council on agenda Nos.15 & 16 in the meeting held on 10.09.2019. Further that the Officer issuing notice cannot be the Adjudicating Officer.

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[2024:RJ-JP:47199-DB]

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[CW-17415/2024]

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(4 of 4)

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The first contention raised lacks merit. The opening para of answers to the FAQs dated 14.05.2019 clarifies that these answers do not have force of law, in other words, 'are not binding’. The recording of the minutes of meeting held by the Council does not give a cause of action for posing challenge, as it is only a proposal by the Council.

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Another aspect is that the impugned show-cause notice was issued to the petitioner in the month of July and for four months, no reply has been filed.

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Learned senior counsel on instructions, submits that the issue of validity of the Notification dated 25.01.2018 be kept open at this stage and liberty be granted to the petitioners to approach the respondents by filing reply.

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The prayer is accepted. The writ petitions are disposed of keeping the issue of validity of the notification open. In case of the petitioners filing reply to the impugned show-cause notice within a period of four weeks, the respondents shall proceed in accordance with law.

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Needless to say, the petitioners shall be at liberty to avail the remedies in accordance with law, if aggrieved of the decision taken by the respondents.

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(ASHUTOSH KUMAR),J

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(AVNEESH JHINGAN),J

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Aarzoo Arora /15

M/S Maruti Nandan Minetech Pvt. Ltd. v. Union of India

Case brief

What is this about?

What did the court decide?

M/S Maruti Nandan Minetech Pvt. Ltd. v. Union of India

Case brief

What is this about?

What did the court decide?

What the court decided

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