TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 697
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....resaid Writ Petition No. 85 of 2023 praying to issue a Writ of Certiorarified Mandamus to quash the notice dated 30.08.2022 and also the consequential notices dated 23.11.2022 and 22.12.2022 issued by the respondent. 3. (i) In the affidavit filed in support of the writ petition, it was stated that the appellant is a Class-I contractor registered with the Highways Department in the State of Tamil Nadu. They were engaged by the Public Works Department in several road contract works for the past several years. According to the appellant, they are carrying only government projects to lay road and maintenance works etc. While so, the respondent issued a notice dated 30.08.2022 calling upon the appellant to produce the books of account for the f....
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....rms of Section 74 (8) of the CGST Act, 2017, where goods and services tax and applicable interest are paid within thirty days from the date of service of the notice under sub-section (1) of Section 74 of the Act, the penalty shall be 25 percent of such goods and services tax and the proceedings in respect of the goods and services tax, interest and penalty shall be deemed to be concluded, provided the said amount of penalty is also paid within 30 days. (iii) In response, the appellant sent a communication dated 22.11.2022 stating that the show cause notice dated 18.10.2022 was issued on the basis of voluminous documents and requested to grant them two months time to go through the documents and the files, so as to submit an effective reply....
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....ble. 4. The learned Judge, on hearing the counsel for both sides, dismissed the writ petition with the following observations: "10. This Court carefully considered the rival submissions in the light of the fact situation of the case on hand. On such consideration, this writ Court is of the considered view that the writ petition does not cut ice or pass muster, it can only be dismissed and the reasons are as follows: (a) The inspection was on 16.03.2020 and the first impugned notice was issued on 30.08.2022 this being a notice qua audit under Section 65 of TN~G & ST Act , the SCN dated 18.10.2022 was issued thereafter. Therefore, the SCN qua Section 74 of C~G & ST Act is post notice for audit under Section 65. This by itself douses the ....
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....tition fails and the same is dismissed. Consequently captioned WMP is also dismissed. There shall be no order as to costs." 5. The aforesaid order of the learned Judge dated 06.01.2023 passed in the writ petition, is assailed in this writ appeal, at the instance of the writ petitioner. 6. The learned Senior Counsel appearing for the appellant submitted that the proceedings under Section 74 of the CGST Act have already been initiated and show cause notice was also issued by the Additional Commissioner, Directorate General of Goods and Services Tax Intelligence (DGGI) Chennai Unit. Pursuant to such proceedings, the documents and/or files relating to the transactions, the appellant had, have been recovered. The said proceedings was initiated....
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....r the appellant and the learned Senior Panel Counsel appearing for the respondent and also perused the materials available on record. 9. On consideration of the facts narrated above, it is clear that during March 2020, there was an inspection conducted by the officials of the Directorate General of GST Intelligence and pursuant to such inspection, investigation has been going on for about two years. It is also an admitted fact that the documents relating to the financial transaction for the period from July 2017 to March 2021 have been handed over by the appellant to the officials of the Directorate General of GST Intelligence for their verification. While so, the respondent, invoking the provisions contained under Section 65 of the CGST A....