BLOSSOM INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) The challenge in this Petition is to the show cause notice bearing No.DGGI/SZU/36-158/2022-23 dtd. 30/1/2023 (Exhibit-A) issued by the Directorate General of Goods & Services Tax Intelligence, Surat Zonal Unit.

(3.) Mr. Nankani, the learned Senior Advocate for the Petitioner, submitted that the Petitioner has entered into a licence agreement for the manufacture and sale of beer with the 4th Respondent (UBL). He submitted that the impugned show cause notice, notwithstanding the terminology used therein, proposes a tax on the supply of alcoholic liquor for human consumption. He further submitted that both under Sec. 9(1) of the Central Goods and Services Tax Act, 2017 ("CGST Act 2017") and the Constitutional Scheme, no CGST or IGST could be levied on the sale of alcoholic liquor for human consumption by any authority other than the State Authority. Accordingly, he submitted that the impugned show cause notice is ex-facie without jurisdiction, being beyond the legislative and, consequently, the executive competence of the Central Government.