TaxTMI 
TaxTMI 
2026 (6) TMI 1407
X X X X Extracts X X X X
X X X X Extracts X X X X
....07.2024 (as contained in Annexure - P 3 series) issued by the respondent no. 3 and 4 under section 74 of the Central Goods and Services Tax Act, 2017 (hereinafter called the Act) in absence of any fraud or any willful misstatement or suppression of facts to evade tax particularly, in view of payment of tax voluntarily for multiple assessment years before the issue of the show cause notice be set aside and quashed. (ii) The order dated 04.02.2025 and 06.02.2025 (as contained in Annexure-P 4 series) and notice dated 24.10.2025 (as contained in Annexure-P 5) passed by the respondent no. 3 for the Tax Period 2017-18 to 2022-23 under section 74 of the Central Goods and Services Tax Act, 2017 (hereinafter called the Act) for multiple assessment years and also in view of payment of tax prior to issue of a show cause notice in Form GST DRC 1 voluntarily and more importantly, in view of levy of interest and penalty in excess of the show cause notice in Form GST DRC 1 being in contradiction of the statutory provisions contained in section 75 (7) of the Act be set aside and quashed. (iii) The Circular F. No. CBIC 20010/67/2025- GST/994 dated 16.09.2025 issued by the responde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 50 of the CGST Act, 2017. 6. The records would further reveal that the tax payer paid a sum of Rs. 5,79,756/- vide DRC-03, Debit entry dated 19.06.2024. The tax payer was then requested to discharge remaining tax amounting to Rs. 4,80,000/- vide various office letters. In response to the same, the tax payer discharged the remaining payment amounting to Rs. 4,80,000/- but the liability towards the interest under Section 50 of the CGST Act, 2017 was not discharged. 7. It is further noticed that the petitioner had availed excess input tax credit amounting to Rs. 29,35,892/- [IGST-12,188/- + CGST- 17,88,273/- + SGST- 11,35,431/-] during the period 2017-18 to 2022-23. This was detected during the scrutiny of the ITC available as per GSTR-2A and ITC availed as per GSTR-3B. This was found in violation of Section 16 of the CGST Act, 2017 read with Rules 36 of the CGST Rules, 2017. In response to the said wrong availment of input tax credit, the petitioner was requested reverse excess availed ITC. In response to the same, the petitioner paid tax amounting to Rs. 29,35,892/- which have been shown in the show cause notice. It is mentioned that the tax payer/petitioner did not dischar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilized input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice." 6. The said taxpayer was communicated the decision of the MCM conducted on 20.06.2024 (Form GST ADT-02) vide this office letter C.No. GADT CnGADT/GST/6266/2024-GR19-CGST-ADT CIR-6-ADT-PATNA/621 dated 27.06.2024 (RUD-4 and further through DRC-01A: 09/Audit(Dbg)/Gr.19/2024-25 vide this office letter GADT/ Cn ADT/GST/6266/2024-GR19-CGST-ADTCIR-6-ADT PAINA /641 dated 04.07.2024 (RUD-5) requesting to pay Tax amounting to Rs. 34,29,719/- CGST- Rs. 20,35,187/-, SGST-Rs.13,82,344/- & IGST- Rs.12,188/- alongwith confirmed interest amounting to Rs. 4,56,626/- CGST- Rs. 2.14,841/- & SGST- Rs. 2,07,332/- +IGST-Rs. 34,053-] and Late Fees- 7,94,350/- [CGST-Rs.3,97,175/- and SGST- 3,97,175/-] in addition to applicable interest under Section 50 and penalty at applicable under Section 74 of the CGST Act, 2017 d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y no. DC 1007240011378 dated 07.07.2024(RUD-33) • Debit entry no. DC 1007240011382 dated 07.07.2024(RUD-34) and communicated to this office requesting to waive all the interest and penalty in light of 53rd GST council meeting vide their e-mail dated 08.07 2024 (RUUD-7). However, as on date, there is no such circular or notification regarding such waiver. Thus, the taxpayer is liable to discharge the confirmed interest amounting to Rs. 3,17,684/- [CGST-1,58,842/- & SGST-Rs.1,58,842/-] (concerned to the tax amount mentioned in para no.3.3 above) along with applicable interest (concerned to the tax amount mentioned in para no.3.1 and 3.2 above) under section 50 and Penalty under section 74 of the Acts." 9. It is evident from paragraph '5' of the show cause notice that the department has made specific allegation against the petitioner that there is a suppression/wilful-misstatement of the facts with an intention to evade payment of GST. The tax-payer was communicated about the decision of the MCM conducted on 20.06.2024 vide letter referred under paragraph '6' of the show cause notice. 10. There is no dispute over the fact that the show cause notice....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unity to place the case before the Assistant Commissioner (respondent no. 4). There is an admission of liability by the representative of the petitioner in course of hearing. Thus, the petitioner is estopped from taking any plea against the imposition of interest and penalty in terms of the statutory provisions. 18. Learned counsel further submits that the petitioner, if at all, was aggrieved by the impugned order, had a remedy available by filing an appeal before the Appellate Authority under Section 107 of the CGST/BGST Act, 2017. The petitioner chose not to file any appeal within the prescribed period of the limitation. This writ application has been preferred 10 months after the impugned order when the remedy of appeal became barred by limitation. The submission is that this Court sitting under 226 of the Constitution of India would not step into the domain of the competent authority, such as the respondent no. 4 to consider the matters having certain issues of facts which are in complete conflict with the stand taken before the respondent no. 4. The submission is that where the petitioner/her representative has admitted the liability before the respondent no. 4, any interfe....