2024 (1) TMI 74 - HC - GST

Taxpayer's Challenge to Tax Order Fails: Liability, Interest, and Penalty Upheld Under GST Regulations

The SC dismissed the petitioner's writ petition challenging the tax order. The State Tax Officer confirmed SGST liability of Rs. 7,89,384, imposed ... Seeking waiver of interest and penalty - wrongful availment of SGST - petitioner had filed revised Tran – 01 claiming CGST transitional credit - HELD THAT:- The petitioner himself has admitted that he had wrongly availed SGST Tran credit for an amount of Rs. 7,89,384/-. As per the learned Counsel for the petitioner, the petitioner had also filed revised Tran – 01 and the CGST for the said amount has been sanctioned. Therefore, there are no substance in this writ petition for directing the Department to adjust the amount of Rs. 7,89,384/-. The SGST utilised by the petitioner against the due CGST credit for the said amount is sanctioned by the Central GST Department. Thus, the present writ petition is hereby dismissed. Issues involved: The issues involved in this case are the wrongful availing of SGST transitional credit, liability to pay interest and penalty, and the petitioner's request for adjustment between CGST and SGST departments.Wrongful Availing of SGST Transitional Credit: The petitioner, a registered dealer under CGST/SGST Act, 2017, availed SGST transitional credit of Rs. 7,89,384, which was found to be wrongly availed. A Show Cause Notice was issued under Section 73(1) of the SGST Act, proposing a demand for the wrongly availed credit. Despite opportunities, the petitioner did not make the payment or avail the opportunity of personal hearing. The State Tax Officer confirmed the SGST liability, interest, and penalty in Exhibit P-10 order.Liability to Pay Interest and Penalty: The State Tax Officer confirmed the SGST liability of Rs. 7,89,384, interest of Rs. 8,44,360, and imposed a penalty of Rs. 78,938 on the petitioner for wrongly availing the transitional credit. The petitioner's counsel argued for an adjustment between CGST and SGST departments, claiming that the petitioner should have availed CGST for the said amount.Request for Adjustment between CGST and SGST Departments: The petitioner sought an adjustment between the CGST and SGST departments regarding the wrongly availed SGST credit of Rs. 7,89,384. The petitioner's counsel contended that as the petitioner had filed revised Tran-01 claiming CGST transitional credit for the same amount, there should be an adjustment. However, the court dismissed the writ petition, stating that the SGST utilized by the petitioner against the due CGST credit has been sanctioned by the Central GST Department. The petitioner was advised to file an appeal within fifteen days if still aggrieved by the decision in Exhibit P-10, with an assurance of a fair consideration of the appeal on merit.