Delta Corp Limited & Anr. Vs Union Of India & Ors.
Date: October 22, 2023
Subject Matter
Bombay High Court to decide on the challenge to Rule 31A
Summary
The case involves Delta Corp Limited challenging the validity of Rule 31A of the CGST Rules, 2017, and a show cause notice based on Rule 31A, Section 15(5) of the CGST Act, and related notifications and Circulars under the CGST Act. The petition raises constitutional and legal concerns, and the High Court of Sikkim's order admitting a similar challenge adds weight to the ongoing legal battle. The court has issued a Rule, and the respondents have waived service. The Attorney General has been served notice due to the challenge to Section 15(5) of the CGST Act. Both the petitioners and respondents have agreed to file responses and submit their arguments, with final disposal of the matter scheduled for February 2024.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
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. P. Faldessai, learned Deputy Solicitor General of India appears for Respondent No.1.
3. D. Pagnam, 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 No. 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 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. 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 W.P.(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 Section15(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 Petition 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 onboard subject to any overnight part-heard matters.
14. All these matters are to be considered together.