TaxTMI 
TaxTMI 
2025 (5) TMI 772
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....of 2024, W. P. (T) No. 5725 of 2024, W. P. (T) No. 5840 of 2024, W. P. (T) No. 5913 of 2024, W. P. (T) No. 6056 of 2024, W. P. (T) No. 6079 of 2024, W. P. (T) No. 6080 of 2024, W. P. (T) No. 6093 of 2024, W. P. (T) No. 6190 of 2024, W. P. (T) No. 171 of 2025, W. P. (T) No. 1239 of 2025. - -<br>GST<br>HON'BLE THE CHIEF JUSTICE M.S. RAMACHANDRA RAO AND HON'BLE MR. JUSTICE DEEPAK ROSHAN For the Petitioner : Mr. Sumeet Kumar Gadodia, Advocate, Mrs. Shilpi Sandil Gadodia, Advocate Mr. Ranjeet Kushwaha, Advocate Ms. Shruti Shekhar, Advocate, Ms. Sanya Kumari, Advocate Ms. Nidhi Lall, Advocate (in all writ petitions). For the Resp.-State : Mr. Sachin Kumar, A.A.G.-II, Mr. Ashok Kumar Yadav, Sr. S.C.-I, Mr. Piyush Chitresh, A.C. to A.G. Mr. G....
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....e and, accordingly, Petitioners were directed to show cause as to why proceeding under Section 73/74 be not initiated against them. 7. Some of Petitioners replied to aforesaid notices and contended, inter alia, that notices under Section 61 of the JGST Act read with Rule 99 of Jharkhand Goods and Services Tax Rules, 2017 ('JGST Rules') is limited to the extent of discrepancy occurring in the returns, and, issuance of notices by comparing taxable value of supply disclosed by Petitioners in their returns with that of market price of goods, is beyond the scope of Section 61 of the Act. Despite such reply being filed, in some cases, subsequent notices in Form GST ASMT-10 were again issued and all such notices are under challenge in the insta....
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.... is entitled to arrange the affairs of its business in the manner best suited to it, and, merely because certain goods are sold allegedly at a rate less than the market value, cannot constitute a cause of action for initiating proceedings under Section 61 of JGST Act, unless it is alleged that goods have actually been sold at a price higher than the price as reflected in the returns. Reliance in this regard was placed upon a Division Bench decision of this Court in the case of Nirmal Kumar Pradeep Kumar Vs. State of Jharkhand & Ors. (decision dated 21.02.2023 in W.P.(T) No. 2222 of 2022). 12. Per contra, Mr. Sachin Kumar, learned AAG-II, appearing for Respondent-State, defended the notices and stated that from bare perusal of the notices....
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....vant pleadings and statutory provisions in question. For the sake of ready reference, Section 61 of JGST Act is quoted herein-below:- "61. Scrutiny of returns.-(1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto. (2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard. (3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such furthe....
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..... (iii) Adjudicatory provisions: (a) Section 73-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts. (b) Section 74-Determination of tax nor paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful-misstatement or suppression of facts. 18. Admittedly, in present cases, notices under Section 61 have been issued to writ petitioners and instead of pointing out discrepancies in the returns filed by writ petitioners, the competent officer has embarked upon an exercise of comparing the price at which Peti....