2025 (11) TMI 1536

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....nter alia, challenging the Order-in-Original dated 21st January, 2025 (hereinafter, 'the impugned order') passed by the Office of the Principal Commissioner of Central GST, Delhi North. The Petitioner further challenges the Form DRC-07 dated 23rd February, 2025 by which a demand has been raised against the Petitioner for a sum of Rs. 1,32,467/-. 3. The stand of the Petitioner is that prior to the issuance of the show cause notice dated 7th June, 2024, (hereinafter, 'SCN'), the entire demand was paid by the Petitioner in the month of August, 2022 itself. This is evidenced by a letter dated 31st August, 2022 issued by the Delhi Sales Corporation which is placed at Annexure P-3 in the present petition. Thus, it is the stand of the Petitione....

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....the Petitioner that no further penalty can be imposed on them. 8. Heard. A perusal of Section 74 of the Act would show that there is a fundamental difference in the wording of Section 74(5) and Section 74(8) of the Act. The said provisions contemplate issuance of initially a notice under Section 74(1) of the Act, as to why the taxable amount along with interest ought not to be recovered. Upon such notice being issued along with a statement-cum-demand under Section 74(3) of the Act, the person chargeable with tax has the option to pay the tax along with 15% of the penalty on his own. If the same is done, then no further notice would be served upon such a person. 9. On the other hand, if the amount is not paid and a show cause notice is....

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....r than those covered under sub-section (1), on the person chargeable with tax. xxxx (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. (7) Where the proper officer is of the ....