TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 793
X X X X Extracts X X X X
X X X X Extracts X X X X
....esale and retail business of Lithium Ion and other batteries. The GST Department, upon gathering certain intelligence about alleged tax evasion, had conducted a search at the premises of the Petitioner, on 12th March, 2021. 5. Subsequently, a Show Cause Notice dated 3rd August, 2024 (hereinafter, 'SCN') was issued to the Petitioner alleging evasion of GST by way of misdeclaration of duty slab for HSN Code 8507 i.e., 18% instead of 28%, and short payment of GST. The SCN was duly replied by the Petitioner vide reply dated 18th September, 2024. 6. Order-in Original dated 10th January, 2025 was passed by the Additional Commissioner, Central Tax (Delhi West), against the Petitioner, confirming the demand (hereinafter, 'OIO'). 7. Aggrieved by the OIO, the Petitioner had filed a rectification application under Section 161 of the Central Goods and Services Tax Act, 2017, before the Additional Commissioner, Central Tax (Delhi West). 8. Since the rectification application was pending for long, before the aforesaid authority, and the limitation period for filing the appeal was expiring, Petitioner had filed W.P. (C) No. 4785/2025. 9. Vide W.P. (C) No. 4785/2025, the Petitioner challenged....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e impugned order has now been passed by the Additional Commissioner, Central Tax (Delhi West), confirming the demands and also imposing penalties. 13. Aggrieved by the impugned order, the Petitioner has filed the present writ petition. 14. Mr. Bimal Jain, ld. Counsel for the Petitioner, has taken the Court through the impugned order, which would show that the manner in which the demand has been raised is that the total turnover of the Petitioner has been captured and the turnover of the combo sales has also been captured, on B2B and B2C basis. 15. Further, it is submitted that invoices and certain other documents of the Petitioner were also filed. However, the Adjudicating Authority has held that in so far as, B2C sales are concerned, no invoices were filed. After having held so, the Adjudicating Authority has taken the total turnover in each of the financial years, as the amount on which the tax would be liable to be paid. 16. Ld. Counsel for the Petitioner submits that even if the Adjudicating Authority had found that tax was liable to be paid due to the discrepancy in the HSN Code, and the classification used by the Petitioner, GST cannot be demanded on the total turnover. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ver 1 Total Turnover as per GSTR-9C 1,33,04,57,779 2 Turnover of combo sales (B2B) as per the noticee 3,60,67,398 3 Turnover of combo sales (B2C) as per the noticee 1,01,86,960 19. In terms of above, the finding given by the Adjudicating Authority is that the Petitioner has classified the combo sales under two separate HSN Codes i.e., 8507 or 8504. In respect of some invoices the Petitioner discharged the tax liability at 18 %, but in respect of other invoices the Petitioner discharged the tax liability at 28 %, which according to the Adjudicating Authority constitutes misclassification and under-declaration. 20. The findings of the Adjudicating Authority, to this effect, is as under : "(iv) This inconsistent application of tax rates on the same HSN code indicates that the noticee, on various occasions, paid tax at the lower rate of 18% instead of 28%, thereby leading to short payment of tax. Such conduct reflects a deliberate misclassification and under-declaration of the applicable rate with an apparent intent to evade tax. Hence, the claim of the noticee is not corroborated by the data submitted by them and lacks credibility." 21. Similar findings have been ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ade the Tax by misclassifying their goods i.e. by payment of 18% GST instead of Payment of GST @28%. VI. I impose a Penalty of Rs, 50,51,96,165/- (Rupees Fifty Crore Fifty-One Lakh Ninety-Six Thousand One Hundred & Sixty-Five only) on the Noticee under Section 122 (1)(xvii) of CGST & DGST Act, 2017 read with Section-20 of IGST Act, 2017 for non-furnishing the information or documents in response to letter & Summons issued by the department as discussed supra. VII. I refrain to impose any penalty under Section 122(2)(b) of CGST & DGST Act, 2017 read with Section-20 of IGST Act, 2017 in view of the Provisions of Section-75(13) of CGST & DGST Act, 2017 read with Section-20 of IGST Act, 2017. VIII. I refrain to impose any penalty under Section-122(3)(d) of CGST & DGST Act, 2017 read with Section-20 of IGST Act, 2017 as discussed supra. IX. I impose a Penalty of Rs. 25000/-(CGST) + Rs. 25,000/-(DGST) on the Noticee under Section-125 of CGST & DGST Act, 2017 read with Section-20 of IGST Act, 2017 for various act & omissions of the Noticee as discussed in above supra." 23. A perusal of the impugned order would show that the demand and recovery of short paid GST has been calc....