TaxTMI 
TaxTMI 
2024 (7) TMI 1033
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....the financial year 2019-20. 3. The learned counsel for the respondent, does not wrangle over the fact, that as such the provisions as embodied in Rule 1A of Rule 142 of the Goods and Services Tax Rules, 2017 (hereinafter for short called as the 'GST Rules of 2017'), provisions whereof become extracted hereinafter, rather did require their strictest compliance, at the instance of the Department of Revenue, given the said provisions becoming couched in a mandatory phraseology. "CHAPTER XVIII DEMANDS AND RECOVERY [142. Notice and order for demand of amounts payable under the Act.- (1) The proper officer shall serve, along with the (a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01, (b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable. [(1A) The proper officer shall, before service of notice to the person chargeable wi....
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.... On examination of the information furnished in the return and also in the information furnished in the GSTR-1, E-way bill and other records available in this office it was found that you have not declared your correct tax liability in the return. The details of short tax paid/ excess ITC availed/ inadmissible ITC, failure to furnish Annual Return is as follows:- 1. As per comparison Report of tax liability, Taxpayer liability is greater than GSTR-1 (outward tax liability) as compared to the tax liability discharged in GSTR-3B. Therefore, it is evident that the tax payer has discharged short output tax liability amounting to Rs. 2,03,611.22/- (Rs. 96,285.82 of IGST and Rs. 53,662.70/ each in CGST & SGST). Hence, Taxpayer is required to pay the differential tax liability, along with interest under section 50 (1), and applicable penalty u/s 73 (1) through FORM GST DRC-03 as under :- Particular IGST CGST SGST Total TAX 96286 53663 53663 203612 Interest 71320 39749 3 9749 150818 Penalty 10000 10000 10000 30000 Total 177606 103412 1 03412 384430 2. As per comparison Report of ITC taken i....
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.... interest u/s 50 (1) as under: - Particular IGST CGST SGST Total TAX 0 0 0 0 Interest 244 0 0 244 Penalty 0 0 0 0 Total 244 0 0 244 6. The provision of section 44 reads as under :- Section 44. Annual return r/w Section 47(2) - xxxx xxxx xxxx 7. On perusal of E-Way bill record, it is observed that there is mismatch between E-Way Bill generated and 3B Liability amounting to Rs. 14,98,950/-. The tax payer is required to pay GST with interest and penalty. Sr. No. Particulars (FY 2019-20) Amount (Rs.) A E-Way Bill Total Liability 97,63,104 B GST R3B Total Liability 82,64,154 A-B Mis-Match (E-Way Bill - GSTR-3B Liability) 14,98,950 Further, the above difference is accounted equally in all three heads as under :- Particular IGST CGST SGST Total TAX 499650 499650 499650 1498950 Interest 235068 235068 235068 705205 Penalty 49965 49965 49965 149895 Total 784683 784683 784683 2354050 2. The consolidated summary of the tax due as per below mentioned table :- Particul....
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....st and penalty. Sr. No. Particulars (FY 2019-20) Amount (Rs.) A E-Way Bill Total Liability 97,63,104 B GSTR3B Total Liability 82,64,154 A-B Mis-Match (E-Way Bill - GST 3B Liability) 14,98,950 Further, the above difference is accounted equally in all three heads as under :- Particular IGST CGST SGST Total TAX 499650 499650 499650 1498950 Interest 415189 415189 415189 1245566 Penalty 49965 49965 49965 149895 Total 964804 964804 964804 2894411 The total tax, interest and penalty proposed is of Rs. 28,94,411/- and not 23,54,050/-. 3. Further, in para 2, containing summary of demand, shall be read as :- Particular IGST CGST SGST Total TAX 613936 1594690 1594690 3803315 Interest 500361 1263171 1263171 3026702 Penalty 69965 234707 234707 539379 Total 1184262 3092567 3092567 7369397 And the total demand along with tax, interest and penalty proposed is of Rs. 73,69,397/- and not 44,75,230/- as mentioned in the original notice. 4. Rest of the notice remains t....
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...." 9. Now, in-so-far as the reliance as becomes placed by the learned counsel for the petitioner upon Annexure P-4, is concerned, yet the said reliance as placed thereons, is also a mis-placed reliance. The reason being that, the expostulation of law as set forth in paragraph No. 12 thereof, para whereof becomes extracted hereinafter, does with crisp clarity and lucidity, speak about prejudice emanating to the assessee, thus arising from the evident fact, that the mandatory provisions expressed in Rule 142 of the GST Rules, 2017 became breached by the department, in the latter issuing the show cause notice upon the petitioner-assessee thereins, thus without the apposite complete details being expressed thereins nor such apposite details becoming communicated to the assessee thereins. Contrarily when for reasons hereinafter the said omission is not forthcoming in the instant case. Reiteratedly therebys the expostulation of law as set forth in paragraph No. 12, is completely not applicable to the instant case. "12. A careful perusal of Section 73 of the CG&ST Act in conjunction with Rule 142 makes it clear that non adherence to Rule 142 had caused prejudice to the writ pet....
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....s echoed in the show cause notice. Contrarily, if the fullest intimations besides graphic detailings of the materials rather are not spoken in the show cause notice, thereupon but obviously the assessee is debarred from exercising the fullest opportunity of contesting those materials which are not reflected in the show cause notice, and which he is asked to surprisingly face. In sequel, therebys there would be a gross breach to the principles of Audi Alteram Partem. "23. This Court finds that there is a lot of substance in the aforesaid contention. 24. It is well settled that a quasi-judicial authority, while acting in exercise of its statutory power must act fairly and must act with an open mind while initiating a show cause proceeding. A show cause proceeding is meant to give the person proceeded against a reasonable opportunity of making his objection against the proposed charges indicated in the notice. 25. Expressions like "a reasonable opportunity of making objection" or "a reasonable opportunity of defence" have come up for consideration before this Court in the context of several statutes. 26. A Constitution Bench of this Court in Khem Ch....