2024 (5) TMI 547 - HC - GST

Non-payment of GST - misinterpretation of the orders passed by the respondents - HELD THAT - The TRAN-1 verification issued is before the DGGI. The very objection raised by the petitioner that parallel proceedings cannot be undertaken, has been accepted by the respondents, and therefore, they have dropped the proceedings, so far as Commercial Tax Officer, Ward 8, Chandigarh is conerned. However, it does not mean that the petitioner can get away from the examination and verification to be done by DGGI, in pursuance of their show cause notice dated 29.09.2023. The petition is dismissed.

Summary

Issues involved: Misinterpretation of orders passed by respondents, show cause notice under Section 21 of UTGST Act, 2017, show cause notice under Section 74 of CGST/TNGST/IGST Act, 2017, dropping of proceedings under Section 73/74, TRAN-1 verification issue

In the judgment, the High Court addressed a writ petition that was deemed "wholly misconceived" due to misinterpretation of orders issued by the respondents. The petitioner had received a show cause notice from the Commercial Tax Officer under Section 21 of the UTGST Act, 2017, and another notice from the Directorate General of Goods and Service Tax Intelligence under Section 74 of the CGST/TNGST/IGST Act, 2017, regarding non-payment of GST. The Commercial Tax Officer informed the petitioner of dropping the proceedings under Section 73/74, except for the TRAN-1 verification issue, which was being handled by the DGGI. Despite the petitioner's argument that proceedings related to TRAN-1 verification should not be kept open, the Court found this argument to be misleading. The Court clarified that while the proceedings before the Commercial Tax Officer had been dropped, the DGGI was still authorized to conduct examination and verification as per their show cause notice. The Court dismissed the petition, affirming that the petitioner could not avoid scrutiny by the DGGI regarding the TRAN-1 verification issue.