Bombay High Court
UNION OF INDIA THROUGH SECRETARY AND OTHERSversusSHIRDI COUNTRY INNS PRIVATE LIMITED THROUGH ITS DIRECTOR LAXMAN KARIYA
- Disposal
- DISPOSED OFF
Holding
The Court stayed the show‑cause notice and disposed of the civil application without vacating the ad‑interim relief.
Summary
The Union of India filed a civil application seeking to vacate an ad‑interim relief that had been granted in a writ petition filed by Shirdi Country Inns Private Ltd., which restrained the Union from taking coercive action pending the writ. The Union argued that the relief prevented it from completing adjudication proceedings under Section 74 of the CGST Act to recover GST, interest and penalty, and that the statutory limitation period would expire on 31‑03‑2026. The petitioner contended that a bank guarantee of Rs. 40,00,000 had already been furnished and that the Union had not filed a reply to the writ petition, so a stay on the show‑cause notice would prejudice the statutory process. The Court, noting the pending reply, granted a stay on the show‑cause notice until further orders and set deadlines for the parties to file replies and rejoinders. The civil application was thereafter disposed of without vacating the interim relief.
Issues considered
- Whether the ad‑interim relief granted in the writ petition should be vacated or modified to allow the Union to proceed with adjudication under the CGST Act.
- Whether a stay on the show‑cause notice issued under Section 74 of the CGST Act is appropriate pending resolution of the writ petition.
Legislation cited
- Central Goods and Services Tax Act — s. 74
Subjects
- CGST Act
- Section 74
- ad‑interim relief
- stay order
- limitation period
- adjudication proceedings
- writ petition
- bank guarantee
Judgment
2026:BHC-AUG:13172-DB
930 ca 3479 2026 re-dictation
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
930 CIVIL APPLICATION NO. 3479 OF 2026
IN WP/12579/2025
UNION OF INDIA THROUGH SECRETARY AND OTHERS
VERSUS
SHIRDI COUNTRY INNS PRIVATE LIMITED THROUGH ITS
DIRECTOR LAXMAN KARIYA
WITH
WRIT PETITION NO. 12579 OF 2025
…
• Adv. Golegaonkar Madhur A. for Applicant in CA
• Adv. A. A. Rastogi a/w. Adv. P. M. Rastogi a/w. Adv. Meenal
Songire a/w. Adv. Aarya More for the Petitioner in WP
• Mr. M. K. Goyanka, AGP for State
• Adv. D. S. Laddha h/f. Adv. P. P. Kothari for Respondent No. 6 in
WP
…
CORAM : NITIN B. SURYAWANSHI AND
VAISHALI PATIL-JADHAV, JJ.
DATE : 24.03.2026
PER COURT:
1. At the time of admission, by order dated 10.10.2025, this Court
granted ad-interim relief in terms of prayer clause “K”, on the condition
that the petitioner shall furnish a bank guarantee in the sum of Rs.
40,00,000/- from a nationalised bank, thereby restraining the
respondents from taking any coercive action against the petitioner,
pending disposal of the writ petition. Accordingly, the petitioner has
furnished the bank guarantee.
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930 ca 3479 2026 re-dictation
2. The respondents have filed the present Civil Application for
vacating ad-interim relief and, in the alternative, seeking clarification
that ad-interim relief granted by this Court shall not prevent the
applicants from proceeding with and completing adjudication
proceedings pursuant to the show cause notice dated 29.09.2025 issued
under Section 74 of the CGST Act, whereby recovery of GST amounting
to Rs. 4,04,30,101/- along with applicable interest and penalty for the
period from Financial Year 2019-20 to 2024-25 is proposed against the
petitioner.
3. It is contended in the application that the said show cause
notice constitutes foundation of statutory adjudication proceedings
under CGST Act. It is further contended that, instead of participating in
adjudication proceedings and availing statutory remedies under the
CGST Act, the petitioner has filed the present writ petition at a pre-
adjudication stage.
4. It is submitted that the statutory limitation period for
completion of adjudication proceedings and passing of the adjudication
order expires on 31.03.2026. If the ad-interim relief is not vacated
and/or modified, the applicants would be prevented from completing
the adjudication proceedings within the prescribed period of limitation,
which would cause serious prejudice to the statutory process and public
revenue, and the proceedings would be rendered infructuous. Hence, it
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930 ca 3479 2026 re-dictation
is prayed that ad-interim relief be vacated and in the alternative, the
applicants be permitted to proceed with the completion of adjudication
proceedings pursuant to the said show cause notice.
5. The application is vehemently opposed by the petitioner,
contending that, pursuant to the order dated 10.10.2025, bank
guarantee of Rs. 40,00,000/- has already been furnished. It is further
contended that the applicants have not even filed reply to the writ
petition. If stay to the show cause notice is granted, the statutory period
of limitation would stop operating.
6. In view of the above, till the reply is filed and the writ petition
is considered for admission, we deem it appropriate, at this stage, to
grant stay to the impugned show cause notice dated 29.09.2025 until
further orders. The respondents shall file their reply, if any, on or before
08.05.2026. The petitioner may file rejoinder, if any, on or before
10.06.2026.
7. Stand over to 11.06.2026.
8. Civil Application stands disposed of.
[VAISHALI PATIL-JADHAV, J.] [NITIN B. SURYAWANSHI, J.]
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