2023 (5) TMI 925 - HC - GST

Principles of natural justice - ex-parte assessment order - evasion of tax - demand of CGST, SGST, interest and penalty - HELD THAT - Loose papers were in respect of duty chart of the employees. There was no detail of inward supply and outward supply in the loose paper and, therefore, the appellate authority was of the view that because of these loose papers, no solid conclusion can be drawn. The petitioner had accepted before the appellate authority that in the financial year concerned, he had received the taxable amount Rs. 43,75,059.46/- on which, he had paid Rs. 3,70,229/- each for State G.S.T. and Central G.S.T. From the entries, as found in the diary recovered by the Special Investigation Branch, it was noticed that the petitioner had received much more advance than it was shown in the returns. From the documents recovered from the resort by the Special Investigation Branch, it was noticed that the petitioner had received Rs.17,95,000/-, whereas in the return he has shown advance of Rs. 3,73,983.05/- only. The appellate authority had assessed the tax amount of Rs. 1,80,000/- each for State G.S.T. and Central G.S.T., penalty amount of Rs. 3,60,000/- and interest amount of Rs. 3,19,320/- total amount of Rs. 10,39,320/- liability against the petitioner. Against the assessed amount of Rs.48,96,000/-, the Appellate Authority has reduced amount of Rs 38,56,680/- - there are no substance in the submission of the learned counsel for the petitioner that the assessment order is based on presumption. The appellate authority has examined each and every document submitted by the petitioner as well as the documents recovered by the Special Investigation Branch. There are no error in the impugned order - petition dismissed.

Summary

Issues involved:
The judgment involves the assessment of tax, penalty, and interest under the Uttar Pradesh Goods and Services Tax Act, 2017 on a resort for non-compliance with tax regulations and discrepancies in the reported turnover.

Details of the judgment:

Issue 1: Assessment of tax, penalty, and interest
The petitioner, a resort, was issued a notice under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 for non-compliance with tax regulations. The Assessing Authority, through an ex-parte order, assessed a total amount of Rs. 48,96,000/-, comprising Central G.S.T., State G.S.T., penalty, and interest, based on a turnover of one crore. The petitioner challenged this order through an appeal.

Issue 2: Appellate review and findings
The Appellate Authority examined the documents submitted by the petitioner, including returns for the financial year 2017-18, and documents recovered by the Special Investigation Branch. The diary entries recovered indicated discrepancies in the advance amounts received by the petitioner compared to what was reported. The Appellate Authority reduced the assessed amount to Rs. 10,39,320/-, significantly lower than the initial assessment.

Issue 3: Judicial decision
The Court found no error in the Appellate Authority's order, rejecting the petitioner's claim that the assessment was based on presumption. The Court noted that the Appellate Authority thoroughly reviewed all documents and evidence before making its decision. As a result, the writ petition was dismissed for lacking merit and substance.