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TMI Blog2024 (4) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... e of natural justice has to be read into before issuing a final order. From record it appears that the order impugned is dated 14.07.2020, which has never been served upon the petitioner in the manner prescribed under the Act and that too during the Covid-19 period. The power to attach the bank account has to be only by way of an order passed by the Commissioner in order to protect the interest of government revenue and the cash credit account not being as asset of the petitioner, the same could not have been attached in any eventuality. The exercise of power purportedly under Section 79 is nothing else, but a misuse of power vested in the authority under the Act. The respondents have failed to say and satisfy as to how the authority of law has been followed and when the petitioner has never been extended any opportunity of hearing before passing of the order complained of, nor have been communicated before attachment of the bank account. Now it is a settled principle of law that any authority has to follow the principle of natural justice and in the instant case the alleged show cause notice in terms of DRC-01 has been issued under Rule 142 of JGST Rule 2017, demanding tax, intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to be quashed. (iii) For issuance of an appropriate writ, order or direction, holding and declaring that extension of an effective and reasonable opportunity of hearing is a condition precedent before fastening any liability upon the Assessee under the Act, 2017. (iv) For issuance of an appropriate writ, order or direction, for quashing the order/notice dated 14.07.2020 purported to have been passed under Section 61 of the Act without issuing mandatory Show Cause Notice and without making over the relied upon documents and the statements recorded by the designated Authority and the said order has been passed violating the principles of natural justice, which contemplates reasonable and an effective opportunity of hearing as also the rebuttal of allegation in terms of show cause notice and in absence of which, the entire proceedings becomes ab initio void. (v) For issuance of an appropriate writ, order or direction, holding and declaring that issuance of GST DRC-07 vide reference No. ZD2007200010020 dated 16.07.2020 issued under Rule 100 (1), 100(2), 100(3) 142 (5) of the Act of Jharkhand Goods and Service Tax Act, 2017, is ab initio void and is not contemplated under the Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to furnish its return for the supplies made or received and to discharge resultant tax liability for the period under dispute, otherwise the tax liability may be assessed under section 62 of the Act. Vide Impugned order dated 14.07.2020, the Respondent No. 3 completed the Provisional Assessment under section 61 of the Act. The Petitioner was issued with the GST DRC-07 manually on 16.07.2020, fastening the liability under the head taxes, interest and penalty. The Petitioner after completing its actual calculation on the basis of invoices, paid its tax liability for the period under dispute i.e., August, 2019 to December, 2019 in Form GSTR-3B. On 16.01.2021, the Respondent No. 3, also issued notice to the Branch Manager of UCO Bank, Tata Kandra Rd., Dist.-Saraikela - Kharsawa, Jharkhand under section 79 (1) (c) of the Act to pay a sum of Rs. 24,47,660.71/- from the bank account of the Petitioner and to discharge liability towards the petitioner. Vide letter dated 10.02.2021, the Branch head of the UCO Bank, Gamaria Branch informed the petitioner that a sum of Rs. 24,47,660.71/- is due as state GST requested to deposit the same in, so that the amount can be remitted to the Deputy C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice issued under Section 73(1) of the JGST Act, 2017 and thereupon determine the amount of tax, interest and penalty due from such person. 6. He further submits that the Central Board of Excise Customs, New Delhi (known as Central Board of Indirect Taxes and Customs) constituted under Central Board of Revenue Act 1963 (54 of 1963) and as defined under Section 2(16) of the Jharkhand Goods and Services Tax Act, 2017, has issued Master Circular No.1053/2/2017-CX dated 10-03-2017 in exercise of powers under Section 37B of the Central Excise Act, 1944/Section 83 of the erstwhile Chapter V of the Finance Act, 1944 setting out detailed guidelines for the authorities under the Act as to how a show cause notice under Section 11A of the Central Excise Act, 1944/Section 73 of the Chapter V of the Finance Act, 1944 should be issued. He contended that the provision of Section 11A of the Central Excise Act, 1944 and Section 73 of the Chapter V of the Finance Act, 1994 are pari materia to Section 73/Section 74 of the Jharkhand Goods and Service Tax Act, 2017 and hence, in accordance with Section 6 thereof and Section 27 of the Bihar and Orissa General Clauses Act, 1917, the said Circular w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As such, the instant writ application deserves to be dismissed. 9. Having heard learned counsel for the parties and after going through the averments made in the respective affidavits and the documents annexed therein it transpires that Goods Services Tax Act came into being repealing all the acts laws concerning Central Excise Act, Finance Act, 1994, the respective Value Added Tax Act for the reasons that the existing tax system on Goods Services was facing several difficulties. It further transpires that the Petitioner is a registered dealer under the provisions of GST Act, 2017 and is registered with GST Department vide GSTIN No. 20AOHPS2775K1ZO. It also appears that the Central Board of Indirect Taxes and Customs has issued Master Circular No. 1053/2/2017-CX setting out detailed guidelines for the authorities under the Act as to how a show cause notice under Section 11A of Central Excise Act, 1944/ Section 73 of the Chapter V of the Finance Act, 1994 should be issued. In accordance with Section 6 thereof and Section 27 of the Bihar and Orissa General Clauses Act, 1917, the said circular will apply in the case of issuance of show cause notice under the Act. 10. It further tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled principle of law that any authority has to follow the principle of natural justice and in the instant case the alleged show cause notice in terms of DRC-01 has been issued under Rule 142 of JGST Rule 2017, demanding tax, interest and penalty. However, from record it would transpire that the summary show cause notice in terms of Rule 142 (1) has not been complied with which is mandatory under Section 73/74 of JGST Act 2017. In other words, the provisions of 73 and 74 of the Act are mandatory in nature and from bare perusal it appears that DRC-01 and 142(1) has not been complied as such on this score alone the impugned order deserves to be set aside. 14. So far as attachment of bank account is concerned; it is profitable to extract Section 83 (2) of CGST Act which give the power of attachment read as under: 83 Provisional attachment to protect in certain cases (1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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