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2023 (11) TMI 951 - HC - GSTLiability of tax on petitioner-firm - inadmissible ITC claimed from bogus firms - no opportunity of hearing provided - HELD THAT - The precise grievance of the petitioner before this Court is that respondent No. 4 has already issued a show cause notice dated 09.03.2018 (P-4) for the same transaction and for the same period. But now again a fresh show cause notice has been issued to the petitioner in Form GST DRC-01 dated 23.11.2022 (P-8) and without opportunity of personal hearing, the impugned order has been passed on 25.01.2023 confirming the tax liability of Rs. 24,60,526/-along with interest amounting to Rs. 19,55,560/- and penalty amounting to Rs. 12,30,264/- under Section 74 (11) of the CGST/SGST Act, 2017. The impugned order dated 25.01.2023 (P-1) is set aside - petition allowed.
Issues involved: Quashing of show cause notice in Form GST DRC-01 and tax liability imposition due to inadmissible ITC claimed from bogus firms.
Summary: The petitioner filed a petition seeking the quashing of a show cause notice and an impugned order imposing tax liability on the petitioner firm for claiming inadmissible Input Tax Credit (ITC) from bogus firms. The petitioner's grievance was that a previous show cause notice had already been issued for the same transaction and period. However, a fresh show cause notice was issued without providing an opportunity for a personal hearing, resulting in the confirmation of tax liability, interest, and penalty under Section 74 (11) of the CGST/SGST Act, 2017. The petitioner argued that two show cause notices on the same cause of action should be set aside, and no hearing opportunity was given before passing the impugned order. Upon hearing both parties, it was acknowledged that no opportunity for hearing was provided to the petitioner before the impugned order was passed. Consequently, the Court allowed the petition, setting aside the impugned order dated 25.01.2023, and granted liberty to the respondent-department to issue a fresh order after affording the petitioner an opportunity for a hearing and serving the show cause notice dated 23.11.2022.
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