2025 (3) TMI 669 - HC - GST

Challenge to notice issued on account of difference in GST turnover and PAN turnover - HELD THAT - The respondents based on the material produced by the petitioner indicating the return filed in relation to Jindal Marketing Company wherein the return etc. have been shown identical to the difference which was alleged in relation to the petitioner firm i.e. Jindal Communication is not in a position to dispute the plea raised by the petitioner regarding issuance of show cause notice and passing of the final order on account of the fact that both the firms were registered under the GST through the same PAN number. In view of the above fact situation the issuance of show cause notice and raising of the demand against the petitioner firm cannot be sustained. Petition allowed.

Summary

In the case before the Allahabad High Court, the petitioner challenged the issuance of a show cause notice dated 27.05.2024 and a final order dated 08.08.2024 under Section 73 of the U.P. Goods and Services Tax Act, 2017. The dispute arose due to a discrepancy between the GST turnover and PAN turnover, resulting in a demand of Rs. 76,11,305.The petitioner, Jindal Communication, argued that the issue stemmed from the registration of two firms, Jindal Communication and Jindal Marketing Company, under the same PAN number. Jindal Marketing Company had filed returns reflecting the turnover in question, while the respondents sought the same turnover from Jindal Communication. The petitioner's application for rectification under Section 161 of the Act was rejected as time-barred.The respondents could not dispute the petitioner's claim regarding the dual registration under the same PAN. The court found that the issuance of the show cause notice and the demand against the petitioner could not be sustained due to this administrative oversight. Consequently, the writ petition was allowed, and both the show cause notice and the final order were quashed.