2026 (4) TMI 934

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....arned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC) appearing for the Central Tax. 2. Pursuant to the show cause notice in Form GST DRC-01 dated 27.06.2025 issued upon both M/s. Suguna Metals Limited (petitioner in W.P.No.9554 of 2026) and its Managing Director (petitioner in W.P. No. 9166 of 2026) (hereinafter referred as 'the company and its Managing Director'), the adjudication proceedings were held, which led to issuance of the impugned Order-in-Original dated 30.12.2025 and the summary of the order in Form GST DRC-07 dated 31.12.2025. However the impugned Order-in-Original dated 30.12.2025 has, in a composite manner, imposed the tax liability upon the Company and its Managing Director under Sub-Secti....

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....with read with Section 74(1) of the CGST/TGST Act, 2017 and corresponding Section of TSGST Act, 2017; 30. I impose the penalty of Rs. 2,59,28,046/- (Rs. 2,20,29,338/- for availing and utilizing fraudulent ITC & Rs. 38,98,708/- for passing on of ITC without underlying supply of goods) on Shri Bharat Kumar Agarwal, Managing Director of M/s Sugna Metals Limited, under Sec 122 (1A) for his act of omissions and commissions and being beneficiary of the transactions. 31. The proceedings initiated vide Show cause Notice vide OR No.29/2025-Adjn (GST) Medchal (HQPOR No.21/2024-25) dated 27.06.2025 issued by the Joint Commissioner of Central Tax, Medchal GST Commissionerate to M/s. Sugna Metals Limited, Hyderabad is accordingly dispo....

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....h the Company and its Managing Director, if aggrieved, can prefer separate appeals. 5. Learned counsel for the petitioners submits that there are other grounds also to assail the impugned Order-in-Original dated 30.12.2025, as no separate charges were indicated in the show cause notice as against the Managing Director of the Company to offer proper reply. 6. In the aforesaid facts and circumstances and upon consideration of rival submissions of learned counsel for the parties, we are of the view that the Managing Director (petitioner in W.P. No. 9166 of 2026), after obtaining a temporary registration, is entitled to avail the remedy of appeal and take all such grounds on facts and in law as are available to him. The period of limitati....