2026 (1) TMI 1214

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....ap from Indian Railways. Under the Goods & Services Tax Act, 2017 [for short "the GST Act"], the tax payable on such purchase is to be paid by the petitioner, on a reverse charge mechanism basis. The said payment of tax is to be done, by way of deposit of cash, as the payment of tax, under the reverse charge mechanism, cannot be done by adjusting the tax liability against the input tax credit available in the credit ledger of the petitioner. 2. The petitioner had been filing its returns including GSTR-3B returns for the period July-2017 to March-2021. On 14.03.2022, the 2nd respondent issued a notice to the petitioner calling upon the petitioner to pay an amount of Rs. 42,82,275/- along with applicable interest through DRC-03 challan. Th....

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....yed payment of tax. The 2nd respondent also addressed a letter, dated 12.05.2023, to the petitioner, informing the petitioner about the issuance of the above notice, to the banker of the petitioner. The petitioner had thereafter addressed letters, dated 16.05.2023, 24.05.2023 & 30.05.2023, calling upon the 2nd respondent to drop further proceedings. However, the 2nd respondent by proceedings, dated 02.06.2023 & 05.06.2023 had called upon the petitioner to pay a further sum of Rs. 3,41,691/- towards tax, under reverse charge mechanism, and Rs. 3,35,816/- towards interest calculated upto 01.06.2023. It is submitted by the petitioner, that in this process, an amount of Rs. 15,23,804/- was paid out by the banker of the petitioner to the GST aut....

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.... GST Act, are thereafter entitled to pass necessary orders quantifying the tax, late fee, penalty and interest payable on such tax. For this purpose, various provisions including Sections 56, 73 & 74 of the GST Act provide ample power to the authorities. It is only after such an adjudicatory process has been completed that coercive steps under Section 79 of the GST Act can be taken up. In the present case, no such adjudicatory process has been taken up. 8. The defense of the respondents is that Section 75(12) of the GST Act permits recovery even without an adjudicatory order where the liability is an admitted liability. Section 75(12) of the GST Act reads as follows:- "Section 75 (12):- Notwithstanding anything contained in sect....