TaxTMI 
TaxTMI 
2022 (7) TMI 814
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....e writ petitions, therefore they have been tagged together and are being decided by this common judgment. 2. Writ petitioners have prayed for quashing of the summary of show-cause notice issued in Form GST DRC-01 by the respondent State Tax Officer on the ground that the summary of show-cause notice has pre-judged and pre-decided the entire issue and has in fact fastened the liability towards tax, interest and penalty upon the individual petitioners. The petitioners in their individual writ petitions have also sought for quashing of the adjudication order passed under Section 74(9) of the Jharkhand Goods and Services Tax Act, 2017 (hereinafter referred to as 'JGST Act' for short) on the ground that without granting any opportunity of hearing, tax, interest and penalty has been fastened upon the petitioners in a pre-judged and pre-decided manner. Petitioners have also challenged the consequential Demand Notices dated 25.02.2020 issued in Form GST DRC-07 wherein the demand of tax, interest and penalty has been levied. 3. Petitioners contend that no proper show-cause notice has been issued in terms of Section 74(1) of the JGST Act read with Rule 142 of the JGST Rules, 2017. The ....
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....of Section 70 of the Act for giving evidence. Individual petitioners therefore were under a bonafide belief that the authority was satisfied with the documents and such accounts produced at the time of inspection and no further proceedings would be undertaken. However, to their surprise, a summary of show-cause notice was issued bearing separate reference number of the same date or of different date in case of some of the petitioners. A perusal of this summary of show cause notice issued in Form GST DRC-01 under Rule 142(1) of the JGST Rules would show that the respondent State Tax Officer has, in fact, come to a finding that input tax credit has been wrongly availed or utilized by reason or fraud or any willful misstatement or suppression of fact and therefore individual petitioners are liable for tax, interest under Section 50 of the Act and penalty as well furnished in the form of a chart. None of the show-cause notices bore any date of hearing. Petitioners did not get any opportunity to file their reply nor was any proper show-cause notice issued under Section 74(1) of the Act. The respondent Deputy Commissioner of State Tax of concerned circle has straightaway passed the adjud....
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.... note. He has also placed reliance on the case of Jharkhand Ispat Pvt. Ltd. Vrs. Union of India & Ors. [W.P.(T) No.4241 of 2018] judgment dated 16^th April 2019 in support of the same proposition. Learned counsel for the petitioners submits that in terms of Section 74 Sub-section (2) and Subsection (10), any fresh proceedings shall not be barred by limitation even in some of the present cases where the tax period relates to 2017-18. The cut-off date for initiation of proceeding i.e., 5 years would expire six months prior to the time limit specified in Sub-section 10 for issuance of an order i.e. 31^st December 2023. Learned counsel for the petitioners has also placed Section 75(3) of the Act which provides that if an order is required to be issued in pursuance of the direction of the appellate authority or appellate tribunal or a court, such order shall be issued within two years from the date of communication of the said direction. Thus, it is submitted that the initiation of fresh proceedings with a proper show-cause notice would not be barred in time if the matter is remanded to the respondent authorities. Learned counsel for the petitioners has submitted that in terms of the pr....
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....eport was prepared and copy whereof was handed over to the representative of the petitioner firm which was duly received by him. The inspection report made out a prima-facie case of bill trading / circular transaction in case of the individual petitioners who were asked to produce the documents in this regard. It appeared from the documents made available by the petitioners that the transactions were not supported by proper e-way bills. There were apparent discrepancies in the returns filed by the petitioners in Form GSTR- 2A, GSTR-1 and GSTR-3B which showed sham/circular transactions with few dealers. The inward supply and outward supply were shown to have been made with the same dealer/person. Time was granted to the individual petitioners on their request to produce the documents with intimation as to why proceedings under Section 73/74 of the JGST Act be not initiated. On the basis of the facts determined in course of inspection, a summary of show-cause notice was issued to individual petitioners under Section 74(1) of the JGST Act, 2017 relating to the relevant tax periods specifying the amount of tax, interest and penalty payable by the petitioners. Section 74(1) of the JGST ....
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....ant to the order dated th May 2022 do not disprove the specific lacunae pointed out by the petitioners in initiation and conduct of the proceedings leading up to the adjudication order which has confirmed the tax, penalty and interest indicated in each of the show-cause notice in its totality without any variation. Learned A.A.G.-II however submits that in case the impugned show-cause notice and adjudication order and the demand notices are set aside, the matter may be remanded to the competent State Tax Officer to initiate fresh proceeding for the relevant tax period in accordance with law and take a fresh decision. Learned counsel for the State also agrees to the contentions of the petitioners that any initiation of fresh proceeding upon remand would not be hit by limitation in view of the specific provisions of Section 74(2) read with Section 74(10) and 75(3) of the JGST Act, 2017. Learned counsel for the State is not in a position to refute the maintainability of the writ petitions on the grounds of violation of principles of natural justice and the procedure prescribed in law under the JGST Act in conduct of the impugned proceedings. 9. Learned counsel for the CGST has file....
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....sha Enterprises 2018-19 Common (An-2, Pg.36) 25.10.2019 (An-3, Pg41) 25.2.2020 (An-5, Pg-44) 25.2.2020 (An-5/1, pg 47) WPT No. 1051/2021 M/s Mahaveer Steel Industries 2018-19 (related to M/s Sri Sai Enterprises 8.9.2018 (An-6, Pg.59) ASMT-10 issued on 28.1.2020 (An-2, Pg45) 1.9.2020 (An-3, Pg46) 16.09.2020/20 .10.2020 (Part of An-5, Pg-52 to 57) 20.10.2020 (An-5/1, pg 58) WPT No. 1067/2021 M/s Mahaveer Steel Industries 2018-19 (related to M/s SG Enterprises Common (An-6, Pg.57) ASMT-10 issued on 11.3.2020 (An-2, Pg45) 1.9.2020 (An-3, Pg47) 16.09.2020/20 .10.2020 (Part of An-5, Pg-54 to 55) 20.10.2020 (An-5/1, Pg 56) WPT No. 1082/2021 M/s Mahaveer Steel Industries 2019-20 (related to M/s SG Enterprises Common (An-6, Pg.52) ASMT-10 issued on 11.3.2020 (An-2, Pg42) 1.9.2020 (An-3, Pg-43) 16.09.2020/ 02.12.2020 (Part of An-5, Pg-49 to 50) 02.12.2020 (An-5/1, Pg 51) WPT No. 1083/2021 M/s Mahaveer Steel Industries 2017-18 (related to M/s SG Enterprises Common (An-6, Pg.54) ASMT-10 dated 11.3.2020 (An-2, Pg44) 1.9.2020 (An-3, Pg-45) 16.09.2020/ 20.10.2020 (Part of An-5, Pg....
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.... which the tax is not paid or short paid or input tax credit has been wrongly availed or utilised within five years from the date of erroneous refund. The requirement of issuance of a proper show-cause has been held to be a sine qua non while initiating such proceeding in the case of M/s Nkas Services Private Limited (supra). The opinion of this Court contained in paragraphs 14 to 18 are being extracted hereunder :- "14. A bare perusal of the impugned show-case notice creates a clear impression that it is a notice issued in a format without even striking out any irrelevant portions and without stating the contraventions committed by the petitioner whether actuated by reason of fraud or any willful misstatement or suppression of facts in order to evade tax. Needless to say that the proceedings under Section 74 have a serious connotation as they allege punitive consequences on account of fraud or any willful misstatement or suppression of facts employed by the person chargeable with tax. In absence of clear charges which the person so alleged is required to answer, the noticee is bound to be denied proper opportunity to defend itself. This would entail violation of principle....
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....includes various safeguards and one of them is to afford opportunity to the person to deny his guilt and establish his innocence, which he can only do if he is told what the charges leveled against him are and the allegations on which such charges are based. 16. It is also true that acts of fraud or suppression are to be specifically pleaded so that it is clear and explicit to the noticee to reply thereto effectively [See Larsen & Toubro Ltd. Vs. CCE, (2007) 9 SCC 617 (para 14)]. Further in the case of CCE Vs. Brindavan Beverages (P) Ltd. reported in (2007) 5 SCC 388 relied upon by the petitioner, the Apex Court at para-14 of the judgment has held that if the allegations in the show-cause notice are not specific and are on the contrary, vague, lack details and/or unintelligible i.e. sufficient to hold that the noticee was not given proper opportunity to meet the allegations indicated in the showcause notice. We do not agree with the contention of the respondent that the notice ought not to be struck down if in substance it contains the matters which a notice must contain. In order to proceed under the provisions of Section 74 of the Act, the specific ingredients enumerated....
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....times to a person during the proceedings. 14. This issue has attracted the attention of this Court in the case of (M/s Godavari Commodities Limited (supra) wherein at paragraphs-21 to 23 it has been held as under :- "21. At this stage, we deem it appropriate to quote the provisions of Section 75(4) and 75(5) of the CGST/JGST Act:- "75. General provisions relating to determination of tax (4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. (5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing: PROVIDED that no such adjournment shall be granted for more than three times to a person during the proceedings." 22. A conjoint reading of the provisions of Sections 75(4) and 75(5) would reveal as under:- (i) Opportunity of hearing' shall be granted on request. (ii) Opportunity of hearing shall be granted where any adverse decision is contemplated. (iv) If sufficient cause is shown....
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....m GST DRC-01 in case of individual petitioners and the adjudication order also in case of individual petitioners are in the same language and format and that no opportunity whatsoever was given to the individual petitioners to furnish reply to the summary of show-cause notice. 16. Annexure-3 being summary of show-cause notice in Form GST DRC-01 bearing Ref. No.2018 dated 25th October 2019 relating to tax period 2018-19 and the adjudication order at Annexure-4 under Section 74(9) of the Act bearing Ref. No.46 dated 25th February 2020 in the case of the petitioner M/s Jai Jawan Kastha Bhandar i.e. W.P.(T) No.3153 of 2020 are reproduced hereunder :- 17. The summary of the order in Form GST DRC 07 has been issued in individual cases conveying the assessment of liability towards tax, interest and penalty adjudged by the State Tax Officer on wrongful availment of ITC without receipt of goods in contravention of Section 16(2) using fraudulent methods in case of individual petitioners in like manner. It is evident that without proper opportunity of furnishing reply to the show-cause notice and without supplying the relied upon documents referred to in the inspection report, the petit....
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.... Date. ...25.10.2019 ACT:- JGST 2017 Section / Sub-section under which SCN is being issued – 74(1) SUMMARY OF SHOW CAUSE NOTICE A. B. BRIEF FACTS OF THE CASE:- M/s Abhikriti Enterprises, M/s Om Sai Ram Enterprises, M/s Mahaveer Steel Industries, M/s Esh Ispat Pvt. Ltd and M/s Nisha Enterprises से खरीद की विवरणी राशि 6,59,42,594.50 GSTIN-20ELMPS2227C1ZF, CGST 59.34.833.51 SGST 59,34,833.51 GROUNDS:- INS संखà¥à¤¯à¤¾ 591 दिनांक 28.06.2019 के आलोक में किये गये निरीकà¥à¤·à¤£ के कà¥à¤°à¤® में पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान के दà¥à¤µà¤¾à¤°à¤¾ à¤à¤• रणनीति के अनà¥à¤¤à¤°à¥à¤—त जिन पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान à¤....
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....¯à¥€ है। मà¥à¤–à¥à¤¯à¤¾à¤²à¤¯ से पà¥à¤°à¤¾à¤ªà¥à¤¤ Intelligence Note संखà¥à¤¯à¤¾ 78 दिनांक 13.06.2019 à¤à¤µà¤‚ पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान के निरीकà¥à¤·à¤£ के कà¥à¤°à¤® में यह पाया गया कि सरà¥à¤µà¤¶à¥à¤°à¥€ जय जवान काषà¥à¤ à¤à¤‚डार वितà¥à¤¤à¥€à¤¯ वरà¥à¤· 2017-18 2018-19 à¤à¤µà¤‚ 2019-20 में M/s Abhikriti Enterprises, GSTIN - 20AKJPD6340C1ZY, M/s Om Sai Ram Enterprises, GSTIN-20BBLPK7292M1Z8, M/s Mahaveer Steel Industries, M/s Esh Ispat Pvt. Ltd, GSTIN- 20AAGCM2298D1ZS and M/s Nisha Enterprises, GSTIN-20AFZPD5393P1ZQ से आपस में Inward / Outward Supply की गयी है। à....
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....ियम 2017 की धारा 74(1) के अनà¥à¤¤à¤°à¥à¤—त Input tax credit wrongly availed or utilized by reason or fraud or any willful misstatement or suppression of fact मानते हà¥à¤ कर राशि के बराबर शासà¥à¤¤à¤¿ तथा धारा 50 के अनà¥à¤¤à¤°à¥à¤—त बà¥à¤¯à¤¾à¤œ अधिरोपण की कारà¥à¤°à¤µà¤¾à¤ˆ निमà¥à¤¨à¤µà¤¤ की जाती है :- Penalty Total Tax Period Act Place of supply Tax/Cess Interest (name of State) 2 3 4 5 6 7 8 2018-19 SGST CGST Jharkhand Jharkhand Total 59.34.833.51 8.51.703.62 59,34,833.51 8,51,703.62 1,18,69,667.02 17,03,407.24 59,34,833.51 1,27,21,370.64 59,34,833.51 1,27,21,370.64 1,18,69,667.02 | 2,54,42,741.28 Annexure-4 (हà¥....
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....°à¤¾ किया गया। निरीकà¥à¤·à¤£ के कà¥à¤°à¤® में à¤à¤¾à¤°à¤–णà¥à¤¡ माल à¤à¤µà¤‚ सेवा कर अधिनियम 2017 की धारा 35 à¤à¤µà¤‚ ततà¥à¤¸à¤‚बंधित नियमावली के नियम 56 के पà¥à¤°à¤¾à¤µà¤§à¤¾à¤¨à¥‹à¤‚ के अनà¥à¤¤à¤°à¥à¤—त पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान से संबंधित विहित लेखा - पà¥à¤¸à¥à¤¤ à¤à¤µà¤‚ अà¤à¤¿à¤²à¥‡à¤–ों की माà¤à¤— की गई। जिसके आलोक में उपसà¥à¤¥à¤¿à¤....
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....बà¥à¤§ कराया जाना अनिवारà¥à¤¯ है। निरीकà¥à¤·à¤£ के समय पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान के उपसà¥à¤¥à¤¿à¤¤ पà¥à¤°à¤¤à¤¿à¤¨à¤¿à¤§à¤¿ के दà¥à¤µà¤¾à¤°à¤¾ वà¥à¤¯à¤µà¤¸à¤¾à¤¯à¤¿à¤• पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान से संबंधित सà¤à¥€ वांछित लेखा-पà¥à¤¸à¥à¤¤ / अà¤à¤¿à¤²à¥‡à¤– पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ करने के निमितà¥à¤¤ समय की माà¤à¤— किठजाने पर, निरीकà¥à¤·à¥€ दल के दà¥à¤µà¤¾à¤°à¤¾ निरीà....
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....¤¸à¥à¤¥à¤¾à¤ªà¤¿à¤¤ नहीं किया जाना, इस तथà¥à¤¯ को समà¥à¤ªà¥à¤·à¥à¤Ÿ करता है कि इनके दà¥à¤µà¤¾à¤°à¤¾ GST अधिनियम 2017 के अनà¥à¤¤à¤°à¥à¤—त विहित लेखा-पà¥à¤¸à¥à¤¤ / अà¤à¤¿à¤²à¥‡à¤– का संधारण नहीं किया जाता है, और यदि लेखा-पà¥à¤¸à¥à¤¤ का संधारण किया à¤à¥€ जाता है, तो वह कर अपवंचन की मंशा से मनमाने तरीके से तथ....
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....का सà¥à¤Ÿà¥‰à¤• यथा Log (m3-41.575 तथा Sawn (M3) - 337.858 पाया गया। लोहा - इसà¥à¤ªà¤¾à¤¤ का कोई सà¥à¤Ÿà¥‰à¤• नहीं पाया गया । GSTN Portal पर उपलबà¥à¤§ आंकड़ों à¤à¤µà¤‚ विà¤à¤¾à¤—ीय Intelligence Note के अनà¥à¤¸à¤¾à¤° पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान के दà¥à¤µà¤¾à¤°à¤¾ à¤à¤• रणनीति के अंतरà¥à¤—त जिन पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ानों से लोहा-इसà¥à¤ªà¤¾à¤¤ का आवक आपूरà¥à¤¤à¤¿ ( Inward Supply) पà¥à¤°à¤¾à¤ªà¥à¤¤ की ज....
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....िलेख को न तो संधारित किया गया है और न ही मांगे जाने पर उपसà¥à¤¥à¤¾à¤ªà¤¿à¤¤ किया गया। इन तथà¥à¤¯à¥‹à¤‚ के आधार पर यह यà¥à¤•à¥à¤¤à¤¿à¤¯à¥à¤•à¥à¤¤ होता है कि वà¥à¤¯à¤µà¤¸à¤¾à¤¯à¥€ के दà¥à¤µà¤¾à¤°à¤¾ लोहा-इसà¥à¤ªà¤¾à¤¤ का Movement नहीं किया गया है और न ही recipient दà¥à¤µà¤¾à¤°à¤¾ माल की सà¥à¤ªà¥à¤°à¥à¤¦à¤—ी पà¥à¤°à¤¾à¤ªà¥à¤¤ की गयी है। पà¥à¤°à....
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....रापà¥à¤¤ लोहा-इसà¥à¤ªà¤¾à¤¤ से संबंधित Inward Supply विषयक ITC को असà¥à¤µà¥€à¤•à¤¾à¤° किया जाता है। विचाराधीन अवधि में M/s Abhikriti Enterprises, GSTIN-20AKJPD6340C1ZY, M/s Om Sai Ram Enterprises, GSTIN-20BBLPK7292M1Z8, M/s Mahaveer Steel Industries, GSTIN-20ELMPS2227C1ZF, M/s Esh Ispat Pvt. Ltd, GSTIN-20AAGCM2298D1ZS and M/s Nisha Enterprises, GSTIN-20AFZPD5393P1ZQ से किये गये लोहा - इसà¥à¤ªà¤¾à¤¤ के कागजी खरीद के विरूदà¥à¤§ CGST- Rs. 59, 34, 833.51 तथा SGST- Rs. 59, 34, 833.51 में लिये गये ITC को Wrongly availment of ITC मानते à....
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....¤•à¥‡ पशà¥à¤šà¤¾à¤¤à¥ अनà¥à¤¯ कोई विकलà¥à¤ª उपलबà¥à¤§ नहीं रहने तथा राजà¥à¤¯ के राजसà¥à¤µ दृषà¥à¤Ÿà¤¿à¤•à¥‹à¤£ से, अंतिम रूप से पà¥à¤°à¤¤à¤¿à¤·à¥à¤ ान के विरूदà¥à¤§ कर, बà¥à¤¯à¤¾à¤œ à¤à¤µà¤‚ शासà¥à¤¤à¤¿ का निरà¥à¤§à¤¾à¤°à¤£ निमà¥à¤¨à¤µà¤¤à¥ किया जाता है-- गया। Tax Act Period Place of supply (name of State) Tax/Cess Interest Penalty Total 2 3 4 5 6 59,34,833.51 8,51,703.62 59,34,833.51 7 59,34,833.51 1.27.21.370.64 59,34,833.51 1,27,21,370,64 2018-19 SGST Jharkhand CGST Jharkhan....