TaxTMI 
TaxTMI 
2026 (8) TMI 782
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....ioner, Commercial Tax And Another, 2024:AHC:158274-DB, the impugned show cause notice is time barred and therefore without jurisdiction. In any case, it may never have been issued with reference to Section 75(3) of the Act. Second, it has been submitted that the order of the Writ Court had clearly recorded findings in favour of the petitioner. Those hit on the jurisdictional facts claimed to be in existence, by the adjudicating authority. 4. Third, it has been submitted that the impugned show cause notice contains recital in paragraph 3 (ग) clearly indicating prejudice against the petitioner. After submissions were complete and order was being dictated, another submission has been advanced that the revenue authorities had no jurisdiction to issue impugned show cause notice inasmuch as they had first initiated proceedings under Section 73 of the Act for the same tax period, vide show cause notice dated 30.09.2023. It was dropped/withdrawn on 30.12.2023. On the same grounds, the second show cause notice may not have been issued under Section 74 of the Act. 5. On the other hand, learned Standing Counsel would contend, once the writ Court granted liberty to the revenue auth....
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.... 670545 Penalty 62087 0 0 62087 Total 1353507 0 0 1353507 2. ITC availed through TRAN-1, however, not substantiated with relevant evidences: CGST SGST ITC availed through TRAN-1 21931776 00 You are hereby directed to furnish explanation with supporting evidences whether the ITC availed through TRAN-1 form has been substantiated by the appropriate authority in accordance with provisions of Section 140 of the CGST Act. If not verified by the proper officer, then show cause why not the same should be reversed along with interest as per section 50 and applicable penalty in the following manner: Particulars IGST CGST SGST Total Reversal of ITC 0 21931776 0 21931776 Interest @ 18% 0 23686318 0 23686318 Penalty 0 2193177 0 2193177 Total 0 47811271 0 47811271 3. Zero-rated supply made without payment of tax (Export and SEZ) declared in GSTR-9, however, not substantiated with LUT and other relevant evidences: Taxable value IGST SGST CGST CESS Zero-rated supply declared in GSTR-9 6222877 0 0 0 ....
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....ITC reversed as per GSTR-09 7C+7D 0 1,75,268 1,75,268 1,02,415 0 4,52,951 6 Difference/Excess ITC claimed S.No.4(-) S.No. 5 0 3,97,426.88 10,04,221.2 8,78,330.02 0 22,79,978.1 You are hereby directed to furnish whether the excess claimed ITC has been paid or not. If not deposited by you, then show cause why not the same should be reversed along with interest as per section 50 and applicable penalty in the following manner: Particulars IGST CGST SGST Total Reversal of ITC 878330 397426 1004221 2279977 Interest @ 18% 948596 429220 1084558 2462374 Penalty 87833 39742 100422 227997 Total 1914759 866388 2189201 4970348 On the basis of all the anomalies discussed above, your total proposed demand is being summarized as below: Cause of Demand Act Place of Supply Tax Interest Penalty Total Point No. 1 IGST U.P. 620875 670545 62087 1353507 CGST U.P. 0 0 0 0 SCST U.P. 0 0 0 0 Point No. 2 IGST U.P. 0 0 0 0 ....
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....e specifically spelled out in the Show Cause Notice. Once the aforesaid basic ingredient of the Show Cause Notice under Section 74 of the CGST Act is missing, the proceedings becomes without jurisdiction as the adjudicating authority derives jurisdiction to proceed under Section 74 of the CGST Act only when the basic ingredients to proceed under Section 74 are present. " 8. After considering the law laid down by the Supreme Court in that context, the writ Court concluded that the show cause notice dated 03.08.2024 did not make a whisper either that the petitioner had wrongly availed or utilised ITC occasioned by fraud or willful misstatement or suppression of facts to evade tax. That basic ingredient of Section 74 found lacking, the writ petition was allowed on the following terms: "28. Accordingly, this writ petition is allowed. The Show Cause Notice dated 03.08.2024 is quashed leaving it open for Respondent No. 2 to initiate fresh proceedings under Section 74 of the CGST Act against the petitioner by issuing a fresh Show Cause Notice containing the basic ingredients regarding fraud or wilful mis-statement or suppression of facts to evade tax, if they so exist. " (e....
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....otice had been set aside, by virtue of specific direction issued by the writ Court, the limitation to pass a fresh order existed upto two years from the communication of the order dated 27.09.2024. 13. To reason that no limitation survived to issue a fresh cause notice under Section 74 of the Act by reading the provisions of Section 75(3) of the Act literally, may limit its application only to cases where final adjudication order may have been set aside. It would defeat the ends of justice and contradict the order of the writ Court that has attained finality. Though the legislature may have worded the provision in the manner noticed above - to refer to only an order, by virtue of specific direction issued by the writ Court (in the instant case), no submission may be successfully advanced on the strength of strict reading of the word 'order' appearing in Section 75(3) of the Act. If at all that issue should have been raised and canvassed at the relevant time before the writ Court or in proceedings that may have arisen upon the order dated 27.09.2024 passed by the Writ Court. Since the order has long attained finality, it does not survive to the petitioner to now raise an objectio....
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.... ने माननीय न्यायालय के समक्ष दिनांक 30.12.2023 को पारित धारा 73 के 'Drop Order' को ढाल बनाकर प्रस्तुत किया और यह गलत व भ्रामक बयान (Wilful Mis-statement) दिया कि उनका संपूर्ण TRAN-1 का मामला पहले ही धारा 73 के तहत विभाग द्वारा स्वीकृत एवं निस्तारित किया ज&....