1. Background of the Case

• Petitioner: Apollo Tyres Limited.
• Respondents: Union of India and GST authorities.
• Issue: Challenge to a show cause notice dated August 2, 2024, issued under Section 74 of the CGST Act, alleging suppression of facts and evasion of GST from July 2017 to March 2022.

2. Petitioner's Argument

• The notice was issued beyond the one-year limitation period.
• Alleged retrospective application of Circular No. 212/6/2024, dated June 26, 2024.
• Relied on Delhi High Court's ruling in M/s JSW Steel Limited v. Directorate General of GST Intelligence.

3. Respondent's Argument

• The petitioner should respond to the show cause notice and raise its defenses before the adjudicating authority.
• The Court should not intervene at this stage as it involves factual determinations.

4. Observations by the Court

• Extended period of limitation under Section 74 was invoked based on allegations of suppression and misstatement.
• Show cause notice relies on investigations, statements, and documentary evidence about discounts given and their GST treatment.

5. Court's Analysis

• Jurisdiction under Article 226: The Court cannot adjudicate factual issues, which should be resolved by the statutory process.
• The petitioner failed to prove violation of fundamental rights, natural justice, or lack of jurisdiction.
• Cited judgments (Whirlpool Corporation, Special Director v. Mohd. Ghulam Ghouse, and Thansingh Nathmal) emphasize alternative remedies over writ petitions.

6. Conclusion

• Petition dismissed, granting the petitioner until December 15, 2024, to reply to the notice.
• Personal hearing and final adjudication to be completed by January 31, 2025.

Acts and Sections Discussed:

1. Central Goods and Services Tax (CGST) Act, 2017:
   • Section 74: Demand for tax in case of suppression of facts.
   • Section 15(3)(b): Treatment of discounts in the value of supply.
   • Section 50: Interest on delayed payment of tax.
2. Article 226 of the Constitution of India: Writ jurisdiction of High Courts.

Ratio Decidendi:

The Court held that a writ petition challenging a show cause notice should not bypass the statutory remedies unless there is a jurisdictional defect, violation of natural justice, or infringement of fundamental rights. Adjudicatory processes should proceed to resolve factual disputes.

Subjects:

• GST Law
• Article 226 Writ Jurisdiction
• Suppression of Facts
• Extended Limitation Period
• Tax Law Procedure