2026 (4) TMI 682

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....ocate for the Respondent. 3.The petitioner before this Court against the impugned order in DRC-07 dated 31.12.2025 whereby the proposal in Show Cause Notice in DRC-01 dated 26.09.2025 has been confirmed. The petitioner had also filed a reply to the said Notice in DRC-06 dated 24.10.2025. Among three defects that were pointed out in DRC-01 dated 26.09.2025 demand in respect of defect No.1 alone tax has been confirmed with the following observation: Dividend Income As the same is covered under the definition of Money. And transaction in money is not covered under GST. Dividend income is generally outside the scope of GST and no specific section in the GST Act deals with its taxation because it is considered a transaction ....

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....ugned proceedings initiated was under Section 73 of the respective GST Enactments and the limitation would have expired if it was passed belatedly. It is submitted that the petitioner should have filed the document to substantiate the defense along the reply dated 24.10.2025. 6.Having considered the submissions of the learned counsel for the petitioner and the learned counsel for the respondent, I am of the view that the petitioner should have filed a proper reply to substantiate the defense with supporting document. The respondent cannot be found fault as the respondent was bound by the time line under Section 73(2) r/w Section 73(9) of the GST Act, 2017. 7.Since the petitioner is liable to pay the amount confirmed vide impugned orde....