The Madras High Court has quashed the order passed against non-existent entity post-amalgamation despite prior intimation.
The bench of Justice Mohammed Shaffiq has observed that it is not permissible for the department to issue a show cause notice in the name of a company which stood amalgamated and proceed to complete the adjudication, in the name of the amalgamated/non-existent company.
The petitioner/assessee, Larsen and Toubro Limited has raised the issue whether it is permissible for the respondent authority to issue a show cause notice in the name of a company which stood amalgamated and proceed to complete the adjudication, in the name of the amalgamated/non-existent company.
The department submitted that the respondent authority was not aware of the amalgamation. When the show cause notice was pointed, to state that the officer was informed and aware of the factum of amalgamation, the learned counsel for respondent would request liberty to proceed afresh against the resultant company.
The court quashed the proceedings against the amalgamated entity.
Case Details
Case Title: M/s.Larsen and Toubro Limited Versus Commissioner of CGST & Central Excise
Case No.: W.P. Nos.23194 and 23200 of 2021 and W.M.P.No.24499 of 2021
Date: 17.04.2025
Counsel For Petitioner: G.Natarajan
Counsel For Respondent: Sai Srujan Tayi
