The present case is one where the impugned show-cause notice suffers from an error going to the root of the jurisdiction of the respondent in assuming jurisdiction and is, accordingly, indefensible and liable to be set aside.
Section 140 of IGST Act, 2017 –Transitional Credit –ITC of Cess - The petitioner challenged SCN dated August 27, 2019, wherein it was alleged that the petitioner availed inadmissible transitional credit amounting to Rs. 3,83,43,693/- in their Trans-1 filed on December 26, 2017. The petitioner submitted that the notice proceeded on the footing that the transitional arrangement for taking ITC in the cases of CESS such as Education Cess (Ed Cess), Secondary & Higher Education Cess (SHE Cess) and Krishi Kalyan Cess (KK Cess) has been taken away by a retrospective amendment. The amendment(s) referred to had not come into force and, therefore, the impugned notice has been issued on an untenable legal premise. The court observed that the respondent has not produced any document or material to show that the amendments in Explanations 1 and 2 to Section 140 brought about by Section 28 of the Amending Act have been brought into force. The show-cause notice is found to be totally non-est in the eyes of law and suffers from an error going to the root of the jurisdiction of the respondent in assuming jurisdiction.
Held that:- The Hon’ble High Court set aside the SCN and granted liberty to the respondent to issue a fresh SCN to the petitioner and if such notice is issued, the petitioner will be free to respond to the same.
The present case is one where the impugned show-cause notice suffers from an error going to the root of the jurisdiction of the respondent in assuming jurisdiction and is, accordingly, indefensible and liable to be set aside.
Section 140 of IGST Act, 2017 –Transitional Credit –ITC of Cess - The petitioner challenged SCN dated August 27, 2019, wherein it was alleged that the petitioner availed inadmissible transitional credit amounting to Rs. 3,83,43,693/- in their Trans-1 filed on December 26, 2017. The petitioner submitted that the notice proceeded on the footing that the transitional arrangement for taking ITC in the cases of CESS such as Education Cess (Ed Cess), Secondary & Higher Education Cess (SHE Cess) and Krishi Kalyan Cess (KK Cess) has been taken away by a retrospective amendment. The amendment(s) referred to had not come into force and, therefore, the impugned notice has been issued on an untenable legal premise. The court observed that the respondent has not produced any document or material to show that the amendments in Explanations 1 and 2 to Section 140 brought about by Section 28 of the Amending Act have been brought into force. The show-cause notice is found to be totally non-est in the eyes of law and suffers from an error going to the root of the jurisdiction of the respondent in assuming jurisdiction.
Held that:- The Hon’ble High Court set aside the SCN and granted liberty to the respondent to issue a fresh SCN to the petitioner and if such notice is issued, the petitioner will be free to respond to the same.