Premature for HC to opine on tax evasion: SC sets aside order that quashed notice under Section 130 CGST Act

The Supreme Court in the case State of Punjab Versus Shiv Enterprises observed and has set aside the order passed by the Punjab and Haryana High Court, wherein stating that it was "premature" on the part of the High Court for quashing a show-cause notice which is being issued under Section 130 of the Central Goods and Service Tax Act, 2017 by invoking the Article 226 jurisdiction.

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It has been noted by the Supreme Court that there were allegations about evasion of tax and hence it was premature on the part of the High Court to opine anything on whether there being any evasion of the tax or not. The said court is to consider same in an appropriate proceeding for which the notice under Section 130 of the Act was being issued.

The bench comprising of Justice MR Shah and Justice CT Ravi Kumar observed and has set aside a judgment and order passed by the High Court of Punjab and Haryana at Chandigarh wherein the High Court in the case had set aside the order of detention of goods or vehicle which is being issued by the Assistant Commissioner State Tax, and also the notice which is issued under section 130 of the Central Goods and Service Tax Act, 2017.

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