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TMI Blog2022 (12) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Whereas in 2019-20, owing to the delayed availment of credit on supplies effected in the previous financial year, the company took input tax credit in excess of the GST paid on the inward supplies effected in 2019-20. HELD THAT:- the show cause notice in terms of Rule-142(1) of the JGST Rules has not been served to the petitioner before issuance of summary of notice in Form DRC-01. - Accordingly, the impugned summary of show cause notice dated 03.11.2020 issued in Form-DRC-01(Annexure-1) is quashed and set aside. - Revenue are at liberty to initiate fresh proceeding from the stage of issuance of Show-Cause Notice in terms of Section 73 read with Rule 142(1) of the JGST Rules. - W.P. (T) No. 4626 of 2022 - - - Dated:- 6-12-2022 - H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Likewise, the company also encountered transactional events wherein the goods and/or services were supplied in the financial year of 2018-19, but the invoice was raised by the vendor in the following financial year 2019-20, or the invoices were received by the company in a 2018-19, but the goods supplied thereunder were in transit and were eventually received by the company in the subsequent financial year 2019-20. At all times however, the company would only take input tax credit which was deemed eligible under the Act and the rules framed thereunder, and within the time limit prescribed therein. However, owing to the stated events, there was a mismatch of the GST payable on inward supplies as recorded in the Form GSTR 2A for the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y electronic mail to its registered mail address under the Act, [email protected], it was not able to respond to such mail earlier owing to its employee tending to such communications having left the company during such time. Thereafter, following submission of the said reply to the Summary of the Show Cause Notice, the Respondent No. 2 proceeded to pass an Order dated 04.08.2021 (Annexure-3), upholding the allegations and demands raised in the said Summary of the Show Cause Notice.In particular, by the said Impugned Order, the Deputy Commissioner of State Tax, confirmed a GST (tax) demand of Rs. 5,60,47,266.51, with interest thereon, in terms of Sections 73(1), (9) and 50 of the Act. The said impugned order was thereafter followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submits that even the petitioner has not been afforded the right of personal hearing which is mandatory under 75 (4) (5) of the Act. Thus, the impugned order is liable to be dismissed on this score alone. He further relied upon the judgment passed in the case of M/s NKAS Service Private Ltd. Vs. State of Jharkhand others passed in W.P.(T) No.2444 of 2021 in relation to a show cause notice issued under Section 74 of the JGST Act, 2017 and also in the case of same petitioner in W.P.(T) No.2659 of 2021 wherein this Court has categorically held that the impugned notice lack in fulfilling the ingredients of proper show cause notice under Section 73 of the Act. He further referred to the judgment passed in the case of M/s Godavari Commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om perusal of summary of notice in Form DRC-01 it would transpire that the gist of acquisition has been duly communicated to the petitioner. For brevity, para-7 and 10 of the counter affidavit is quoted hereinbelow:- 7. That the Hon ble Court may appreciate the fact that the provisions of the Goods and Services Tax Act, 2017 were a new statute for both the tax payers as well as the tax Authorities and prior to the view taken by this Hon ble Court that issuance of the detail Show Cause Notice is a condition precedent for initiation of proceeding under Section 73, it was a general perception that issuance of the Summary of the Show Cause Notice is sufficient for initiation of the proceeding under Section 73 of the Goods and Services T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ception that issuance of summary show cause notice is sufficient for initiation of proceeding under Section 73 of the Act. At this stage it is pertinent to mention here that the law is now well settled by this Court in various judgments that summary of show cause notice cannot substitute or be deemed as proper show cause notice as per section 73 of the Act. Further, in the case of M/s Godavari Commodities Ltd. Vs. The State of Jharkhand others., passed in W.P.(T) Nos. 3908 of 2020 with 3909 of 2020 personal hearing has been held to be mandatory, if the petitioner disputes the liability. For brevity paragraph Nos. 21 of the aforesaid is quoted hereinbelow:- 21. At this stage, we deem it appropriate to quote the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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