SHEESHA SKY LOUNGE HOSPITALITY AND SERVICES PVT LTD. vs UNION OF INDIA (THROUGH CHAIRMAN C.B.I.C.) AND ANR.

Judgment text excerpt

Digitally signed by PRAJAKTA PRAJAKTA SAGAR VARTAK SAGAR Date: 905-WP 2574-24.DOC VARTAK 2026.03.17 21:18:02 +0530 Prajakta Vartak IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 2574 OF 2024 M/s. Sheesha Sky Lounge Hospitality And Services Pvt. Ltd. ...Petitioner Versus Union of India & Anr. ...Respondents _________ Mr. Bharat Raichandani with Ms. Bhagrati i/b. UBR Legal Advocates for Petitioner. Mr. Karan Adik with Mr. S. D. Deshpande for Respondents. __________ CORAM: G. S. KULKARNI & AARTI SATHE, JJ. DATE: 12 MARCH 2026 Oral Judgment (Per: - G. S. Kulkarni, J.) 1. Rule. Rule made returnable forthwith. With the consent of the parties, taken up for final hearing. 2. A short question which raises for consideration in this petition under Article 226 of the Constitution of India is “as to whether the impugned show cause notice dated 30 December 2020 could have been issued by respondent no.2, bypassing the mandatory requirements prescribed under Sections 37B and 37C of the Central Excise Act, 1944, read with Circular No. 1053/2/2017-CX dated 10 March 2017 issued by the Government of India, Ministry of Finance (Department of Revenue), Central Board of Excise & Customs, New Delhi, (CBEC) and subsequent Circular No.1076/02/2020-Cx dated 19 November 2020 stipulating issuance of a notice in regard to a pre-show cause consultation. Page 1 of 9 12 March 2026 905-WP 2574-24.DOC 3. The facts lie in a narrow compass:- The petitioner is a company, inter alia, engaged in running two non-air-conditioned rooftop restaurants at Andheri and Lower Parel in Mumbai. It is the petitioner’s case that on 01 July 2012, the Government granted exemption to restaurants having air-conditioning and a licence to serve liquor vide Notification No.25/201