9911796707
TMI Blog2023 (11) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner herein, deals with transportation of Iron Ore to Rungta Mines Limited, holding valid GSTIN 21AABAK1223111ZQ and files GST return regularly. As per the provisions, the GST returns are being filed in every month. As usual, in terms of Sections 37 and 39 of the OGST Act, the petitioner filed monthly GSTR-3B and GSTR-1 for months of July, 2017 to March, 2018. But a notice dated 20.10.2022 was issued to the petitioner under Section 61 of the OGST/CGST Act, 2017 alleging understatement of liability declared in GSTR- 3B in comparison to the outward supply statement reflected in GSTR-1 of the Act. 2.1 In exercise of the powers conferred by Subsection (3) of Section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, notified the Reverse Charge Mechanism, by which CGST/SGST will have to be paid directly by the receiver of service instead of the supplier. According to the said statutory provisions, Rungta Mines Limited paid the CGST/OGST for the transportation services supplied by the petitioner and availed by the Rungta Mines Limited. But without considering the entire aspects of the matter, without verifyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of personal hearing, time of personal hearing and venue where personal hearing will be held" as "NA". However, in the said notice it has been indicated that the petitioner has been called upon to appear before the said authority on the date and time mentioned in the summary of the show cause notice issued in Form GST ASMT-10. The petitioner is also required to produce/upload all the evidence upon which it intended to rely in support its defence along with reply in Form ASMT-11 within thirty days. It is further stated in the notice that if the petitioner failed to submit the same or the reason submitted by it are found to be not acceptable, then proceeding under Section 73/74 of CGST/OGST Act would be initiated against it. If the petitioner pays the tax along with up-to-date interest till the date of payment in Form DRC-03 against the show cause notice, proceeding in respect of this show cause notice shall be deemed to be concluded as per the provisions under Section 73(8) of the CGST & OGST Act. It was also indicated that the authority "deserves the right to add, amend, delete or modify in part, portion of the notice and such addition amendment, deletion or modification, if any as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writ petition is being disposed of finally at the stage of admission 6. It is an admitted fact that the petitioner is a registered taxpayer under the OGST/CGST Act 2017 having valid registration number and it has been dealing in taxable supply of goods. As per the provisions made under Section 39 of the CGST/OGST Act 2017 read with the OGST/CGST Rules, 2017, the petitioner was to file returns in Form GSTR-3B, which the petitioner filed, and the same have been self-assessed under Section 59 of the said Act. Therefore, as per the provisions made under Section 61 of the CGST/OGST Act read with Rule 99 of the OGST Rules, the returns filed for the tax periods July, 2017 to March, 2018 were scrutinized and the authority detected certain discrepancies to the tune of Rs. 3,30,279.00 with respect to understatement of liability declared in Form GSTR-3B or an amount of Rs. 28,47,936.00 filed under Section 39 of the CGST/OGST Act in comparison to the outward supply of Rs. 31,78,214.00 vide statement reflected in GSTR-1 filed by the petitioner under Section 37 for the noted tax periods. On scrutiny, it was found that the petitioner has made incorrect self-assessment in the statutory returns. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shra, learned Standing Counsel for Revenue to show the provision in exercise of which the authority concerned could write that no personal hearing should be given while the notice under Section 61 of the CGST/OGST Act has been issued. Nothing has been placed to substantiate the same, rather, it is admitted that the petitioner has not been given any opportunity in compliance to the notice dated 26.10.2022 issued under Section 61 of the CGST/OGST Act and the order has been passed by the Assessing Authority without adhering to the principles of natural justice as required under law. As such, when the proceeding under Section 73 of the Act was initiated, it reveals that the petitioner had not been given opportunity of hearing. 9. In Assistant Commissioner of State Tax (supra), the apex Court held that the writ court is otherwise justified in interfering in the order of assessment where the same has been passed without complying with the principle of natural justice of being heard, because the petitioner may remain unclear unless minimum opportunity of hearing is first granted, which is the settled principle of law of the land. 10. In M/s. Godrej Sara Lee Ltd. (supra), the apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pportunity of hearing is a must. Principle of natural justice would commend to this Court to bind the authorities to always ensure to provide such opportunity of hearing. It has to be ensured that such opportunity is granted in real terms. 13. Applying the above principle to the present case, it is admitted that the petitioner deals with the transportation of Iron Ore to Rungta Mines Limited, holding valid GSTIN and files GST returns regularly. In exercise of the powers conferred by Sub-section (3) of Section 9 of the Central Goods and Services Tax Act, 2017, the Central Government on the recommendations of the Council notified the Reverse Charge Mechanism by which CGST/SGST will have to be paid directly by the receiver of service instead of the supplier. Rungta Mines Limited paid the GST/SGST for the transportation services supplied by the petitioner and availed by the Rungta Mines Limited, which is not in dispute and cannot be disputed. Therefore, without affording any opportunity of being heard, as provided under Sec. 75 (4) of GST Act, 2017 and law enunciated and noted above, the Adjudicating Authority issued the order creating heavy civil liability, observing such minimal opp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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