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

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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

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.

The Hon'ble Supreme Court allowing the current appeal by the Revenue observed that the contention put forth by M/s. Bihar Sponge Iron Ltd. ("the Respondent") that the Jharkhand HC decided the matter in favour of Respondents was not correct. The Apex Court noted that the contention is based upon incorrect reading of the Jharkhand HC's Order, observing that the judgment revolved around the factum of validity of the SCN, not more and not less.

Modifying the judgment put forth by the HC, the Supreme Court held that the HC should have kept the option open to the competent authority to issue a fresh SCN in conformity with the provisions of the JVAT Act and Rules.

Thus, directed the appropriate authority to issue a fresh SCN while being in continuation with action initiated in the Original SCN.

 

Bimal Jain
on 31 August 2021
Published in LAW
Views : 18
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