Acme Cleantech Solutions Pvt Ltd Vs Union of India
Date: May 2, 2024
Subject Matter
Corporate guarantee proceedings stayed pending a response from the CBIC
Summary
The Punjab and Haryana High Court has intervened in the ongoing nationwide proceedings concerning corporate guarantee matters by staying the corporate guarantee proceedings pending a response from the Central Board of Indirect Taxes and Customs (CBIC). The decision to stay the proceedings was based on concerns regarding the jurisdictional boundaries of adjudicatory powers, with legal arguments referencing precedents and the potential overreach of the clarificatory circular issued by CBIC. The stay order aims to maintain the status quo until further clarity is obtained from CBIC, ensuring that the Appellate Authority can adjudicate the petitioner’s case without undue influence.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
Learned counsel rely on (2019) 11 SCC 631, Union of India Vs. Karvy Stock Broking Ltd., and submit that impugned Circular dated 27.10.2023 (Annexure P-2) seek to take away the adjudicatory powers of the Assessing Authority as well as the Appellate Authority by clarifying provisions in the nature of adjudication.
Learned counsel also rely on the interim order passed by the High Court of Delhi in W.P (C) 2966 of 2024 titled as ‘Sterlite Power Transmission Limited Vs. Union of India & Ors.‘, where similar issue has been taken up. Learned counsel submit that the petitioner has preferred an appeal, however, the clarification item No.2 in the Circular dated 27.10.2023 directly impinges upon the powers of Appellate Authority and the vary purpose of filing of appeal stands negated.
Notice of motion for 20.08.2024.
Mr. Rishabh Kapoor, Sr. Standing Counsel, appears through Video Conferencing and accepts notice on behalf of respondents No.1, 2, 4, 5 and 6 & Mr. RKS, Brar, Addl. A.G. Punjab, accepts notice on behalf of respondent No.2.
Meanwhile, effect and operation of the impugned Circular dated 27.10.2023 (Annexure P-2) relating to Item No.2 shall remain stayed and the Appellate Authority shall be free to decide the case of the petitioner without being influenced by the Clarification.