Supreme Court modifies High Court's Order by granting appropriate authority to issue fresh SCN

Last updated: 31 August 2021

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Quick Summary

The Supreme Court has overturned a High Court decision that quashed a Show Cause Notice (SCN) issued under the Jharkhand Value Added Tax Act, 2005. The High Court had found the SCN invalid. However, the Supreme Court clarified that the High Court's original ruling was based on a misinterpretation and that the core issue was the SCN's validity. The Supreme Court has now directed that a fresh SCN can be issued, continuing the original action, provided it complies with the JVAT Act and its rules.

Court :
Supreme Court of India

Brief :
In the State of Jharkhand and Ors. v. M/s. Bihar Sponge Iron Ltd. [IA No. 20324/2021 - Exemption from filing O.T dated August 9, 2021], the current appeal has been filed against the Order SLP(C)No. 14956 of 2020 dated October 23, 2019 by the Hon'ble Jharkhand HIgh Court ("Jharkhand HC") which quashed the Show Cause Notice ("SCN") on the grounds of it violating Section 70(5)(b) of Jharkhand Value Added Tax Act, 2005 ("JVAT Act") and not being in conformity with the provisions of it.

Citation :
IA No. 20324/2021 - Exemption from filing O.T dated August 9, 2021

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