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Delta Corp Limited And Ors v. Union Of India And Ors

Delta Corp Limited And Ors v. Union Of India And Ors

(In The High Court Of Bombay At Goa)

WRIT PETITION NO.715 OF 2023 WITH WRIT PETITION NO.716 OF 2023 WITH WRIT PETITION NO.717 OF 2023 | 23-10-2023

1. Heard Mr Harish Salve, learned Senior Advocate who appears along with Mr Harish Narasappa, learned Senior Advocate and Mr Parag Rao, learned counsel for the Petitioners.

2. Mr P. Faldessai, learned Deputy Solicitor General of India appears for Respondent No.1.

3. Mr D. Pangam, learned Advocate General appears along with Mr N. Vernekar, Mr Deep Shirodkar and Ms Maria Correia, learned Additional Government Advocates for Respondent No.2 in WP Nos. 715 of 2023, 716 of 2023 and 717 of 2023 respectively.

4. Ms Asha Desai, learned Senior Standing Counsel appears for Respondent Nos.3 to 9.

5. The challenge in these petitions is to the vires of Rule 31A of the CGST Rules, 2017. The Petitioners have also challenged the show cause notice dated 27.09.2023, which according to the Petitioners is based mainly on Rule 31A of the CGST Rules, 2017. There is also a challenge to Section 15(5) of the CGST Act and to certain Notifications and Circulars issued under the CGST Act and Rules made thereunder.

6. Mr Salve, learned Senior Advocate apart from making his submissions in support of the petitions has placed on record an order dated 20.10.2023 made by the High Court of Sikkim admitting a petition involving a similar challenge in the case of Delta Corp Limited and Another Vs Union of India and others in WP. (C) No.41 of 2023.

7. Accordingly, we issue Rule in these petitions.

8. The learned counsel for the Respondents waive service after Rule.

9. Since there is a challenge to Section 15(5) of the CGST Act, we also issue notice to the learned Attorney General.

10. Ms Desai, learned Senior Standing Counsel submits that the Petitioners without prejudice to their rights and contentions in these petitions may file response to the impugned show cause notice dated 27.09.2023. On instructions, she states that the Respondents whom she represents will not pass any final orders on the show cause notice without leave of this Court. This statement about not passing any final orders on the impugned show cause notice is accepted and the concerned Respondents will have to abide by the same.

11. Mr Salve states that the Petitioners will file a response to the impugned show cause notice without prejudice to their rights and contentions in these petitions by 15.12.2023.

12. Mr Faldessai and Ms Desai state that the response to the Rule would be filed within six weeks from today by serving advance copies on the learned counsel for the Petitioners. Rejoinder, if any, to be filed within four weeks thereafter.

13. After the pleadings are complete, place these matters for final disposal on 05.02.2024. Place the matters high on board subject to any overnight part-heard matters.

14. All these matters are to be considered together.

Advocate List

  • Mr Harish Salve, Senior Advocate with Mr Harish Narasappa, Senior Advocate, Mr Parag S. Rao, Mr Raghav Shankar, Mr Rajendra Barot, Mr Dhirajkumar Totala, Ms Harsha Uppal, Mr Aditya Bihani, Ms Meghana Naik, Mr Rishikesh Vazarkar, Ms Vasudha Jain and Ms Gunjan Pande

  • Mr P. Faldessai, Deputy Solicitor General of India, Mr S. Karpe and Mr R. Chodankar, Mr D. Pangam, Advocate General with Mr N. Vernekar, Ms Asha Desai

Bench
  • HON'BLE MR. JUSTICE M.S. SONAK&nbsp
  • HON'BLE MR. JUSTICE BHARAT P. DESHPANDE
Eq Citations
  • LQ
  • LQ/BomHC/2023/4229
Head Note

Taxation — Central Goods and Services Tax Act, 2017 — CGST Act, 2017 — CGST Rules, 2017 — R.31-A — Challenge to vires of — Show cause notice issued to Petitioners under R.31-A of CGST Rules, 2017 — Petitioners also challenging S.15(5) of CGST Act and certain Notifications and Circulars issued under CGST Act and Rules made thereunder — Interim directions issued — CGST Act, 2017, S.15(5) (Paras 5 to 13)