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TMI Blog2024 (2) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... th the amendment under the aforesaid Amendment Rules with effect from 09.10.2019, Rule 142(1A) is included, and this Rule stipulates that the proper officer shall, before service of notice under Section 73 (1) [as also under Section 74(1)] of the GST Act, communicate the details of the tax, interest and penalty as is ascertained in Part A of Form GST DRC 01A. The proper office is now given the option of issuing intimation in Part A of FORM GST DRC 01A. Simultaneously with the introduction of Rule 142(1A) under the Central Goods and Service Tax [Sixth Amendment] Rules, 2019, Rule 142(2A) is introduced. The provisions of this Rule stipulate inter alia that if the person to whom notice is issued in Part A of Form GST DRC 01A is desirous to file any submissions against the proposed liability, such submissions can be filed in Part B of Form GST DRC 01A. This Court must opine that if indeed the petitioner has filed submissions, as part of its submissions in Part B of FORM GST DRC 01A, asserting that it has offered different prices [for the same supply of goods and services] at different places and declared Returns accordingly, the implication thereof should be examined in the light of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned Show Cause Notice has two parts viz., Part -I, which relates to Input Tax Credit [ITC] availed but disallowed for not complying with the requirements of Section 16(2) and Section 15 of the CGST Act and the relevant Rules, and Part II, which relates to alleged short declaration of Outward Supply and excess claim of ITC in Karnataka. 3. Sri. G. Shivadass, the learned Senior Counsel for the petitioner, at the outset submits that the petitioner is categorical that its grievance, as of this stage, is limited to Part- II, and if such grievance is favoured by this Court, the proceedings could be restored to the stage of FORM GST DRC-01A as contemplated under Section 73(5) of the KGST Act with opportunity to the petitioner to file further reply and liberty to the respondents to reissue Show Cause Notice under Section 73[1] of the CGST/KGST Act. Sri. G. Shivadass, insofar as Part-1 of the Show Cause Notice, submits that the petitioner, because the Show Cause Notice is issued well within the prescribed time, will not raise the question of limitation in the event the writ petition is disposed of at the first instance. 4. This Court must observe that even if the petitioner s grievance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G. Shivadass further submits that upon receipt of this Investigation Endorsement, the petitioner has filed reply on 10.08.2022 setting forth the circumstances such as above and asserting that the dispositive fact, given the provisions of Section 15(1) of the KGST Act, would be the transactional value without any addition, and that the proceedings cannot be initiated only because the transactional value in Karnataka is lower or lesser than the transactional value for the same supply in other States. 9. Sri. G. Shivadass argues that despite this Reply dated 10.08.2022, the petitioner is issued with intimation in FORM GST DRC-01A on 22.09.2023 reiterating the findings in the enforcement proceedings vide the Investigation Endorsement dated 03.08.2022. The petitioner, in response, has once again reiterated that the transactional value is the dispositive factor asserting that there cannot be any proceedings on the ground that there is short declaration of Outward Supply or excess claim of ITC when the declarations are filed on the transactional value without any additions and the transaction is indisputably with unrelated parties. 10. Sri G. Shivadass canvasses that if Intimation in Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in FORM GST DRC-01A dated 22.09.2023, [b] If reasonably it could be opined that such reply has not been duly considered, should the proceedings be restored to the stage of reply to FORM GST DRC-01A for further consideration in the light of the petitioner s specific stand that the question of limitation will not be raised. 14. The Investigation proceedings preceding issuance of the Intimation in Part- A of FORM GST DRC-01A dated 22.09.2023 and the petitioner s response in such proceedings are not disputed. It is seen from the Investigation Endorsement dated 03.08.2022 that the second respondent has recorded that there is short declaration of Outward Supply based on the value of Inward Supply and the Sales Turnover as declared in the relevant Returns. The petitioner has filed detailed response on 10.08.2022 reiterating that it was offering different prices across states and at different time as a matter of business practice. The material part of this reply are as hereunder: 6. In any case, the Company is hereby making the following submissions on each of the grounds on which the demand of GST is proposed in the endorsement- Submissions with respect to the proposal of the short decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y sustainable. 15. The intimation in Part A of FORM GST DRC - 01A is issued on 22.09.2023 reiterating the figures but without any reason on how the petitioner s contention in response to the Endorsement dated 03.08.2022 [that the transaction value will be dispositive] is not relevant. Further, the petitioner, on receipt of the notice in FORM GST DRC-1A dated 22.09.2023, has filed detailed submission on 27.09.2023 again reiterating the submissions as extracted above, and the Show Cause Notice is issued on 30.09.2023. Thus, the entire process of issuance of Intimation in Part A of FORM GST DRC-01A, filing of submissions thereto and consideration thereof is completed within a period of eight [8] days. It is undisputed that 30.09.2023 was the last date of the limitation prescribed. This Court must observe that the reason for this hurried conclusion to assume jurisdiction under Section 73 of the CGST/KGST Act within the crunched period of eight [8] days, is obvious and stark; the anxiety, is to issue Show Cause Notice within time lest cause is lost by lapse of time. 16. The provisions of Rule 142(1) of the Central Goods and Service Tax Rules, 2017, prior to the Central Goods and Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t opine that if indeed the petitioner has filed submissions, as part of its submissions in Part B of FORM GST DRC 01A, asserting that it has offered different prices [for the same supply of goods and services] at different places and declared Returns accordingly, the implication thereof should be examined in the light of the provisions of Section 15 3 of the KGST Act for a reasonable and just commencement of the proceedings under Section 73(1) of the GST Act. 20. The petitioner s grievance insofar as issuance of impugned notice incorporating Part-II thereof must necessarily be examined in the light of this requirement and the fact that the notice does not refer to the submissions filed in reply to the notice in Part B of FORM GST DRC-01A and though this Court can see the reason for issuance of the impugned Show Cause Notice before 30.09.2023 but when the infirmity as aforesaid is obvious, this Court must intervene under Article 226 of the Constitution of India and pass just and reasonable order to ensure that the proceedings prevail in accordance with the requirement of law. The questions framed are answered accordingly, and hence, the following: ORDER The petition is allowed-in-pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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