2022 (5) TMI 64 - HC - GST

Petitioner's Challenge to Show Cause Notice Dismissed as New Proposals Sufficiently Linked to Original Six Proposals

The HC dismissed the petitioner's challenge to a show cause notice dated 07.01.2022, finding that new proposals in the notice were sufficiently linked to ... Scope of SCN - Eligibility of ITC claimed based on the movement of goods - Missing Vehicle details - discrepancies between purchase register and inward E-way bills - Suspicion with respect to movement of goods to related parties - discrepancies in GSTR-3B and GSTR-2A for the Month of April 2018, May 2018 and June 2018 - Discrepancies between sales register and outward e-way bills - HELD THAT:- The assessment order which was earlier passed on 02.03.2020 has been set aside by this Court by its order, dated 31.08.2020. There is no restriction or qualification in the said order. The order dated 02.03.2020 completely stands quashed. Therefore, the department’s appeal was also dismissed as not maintainable. Therefore, the contention of the learned counsel for the petitioner cannot be accepted. The petitioner has to answer to the proposals contained in the show cause notice dated 20.12.2019, content of which has been incorporated in the impugned show cause notice dated 07.01.2022. The so-called new proposals appears to be prima facie covered by the first six proposals in the show cause notice, dated 20.12.2019. They are inter connected. There are no merits in challenge to the impugned show cause notice by the petitioner - The petitioner are directed to file a detailed reply including objections which has been raised in this writ petition before the respondent - petition allowed. Issues:Challenging impugned show cause notice for exceeding scope of original notice and reiterating dropped demands.Analysis:The petitioner, after facing an assessment order for the year 2018-2019, challenged the part of the demand confirmed and the part dropped. Subsequently, writ petitions were filed and allowed, leading to the dismissal of the department's appeal. The petitioner now contests a show cause notice dated 07.01.2022, arguing that it includes new proposals beyond the original notice of 20.12.2019, such as verifying ITC eligibility and discrepancies in tax invoices and registers. The petitioner asserts that demands previously dropped cannot be revisited.The respondent contends that a previous court order set aside the entire assessment order and remitted the case for a fresh decision, resulting in the dismissal of the department's appeal. The respondent argues that the new proposals are clarifications on the original six proposals and fall within the scope of the earlier proceedings. The respondent urges the petitioner to comply with the jurisdiction of the respondent.The court notes that the assessment order from 02.03.2020 was annulled without restrictions, leading to the dismissal of the department's appeal. The court finds that the impugned show cause notice's new proposals are linked to the original six proposals from 20.12.2019, indicating prima facie coverage. Consequently, the court rules against the petitioner's challenge to the show cause notice.The court directs the petitioner to submit a detailed reply with objections raised in the writ petition to the respondent for further consideration and appropriate orders within eight weeks. No costs are awarded, and the connected miscellaneous petition is closed.