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TMI Blog2024 (12) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 61(1) of the Act, he filed his reply and explained how ITC had been claimed as against the business conducted with the concerned parties. The same was assessed by the concerned officer and the Proper Officer passed an order independently dropping the proceedings under Section 61(2) of the Act, 2017. However, from Section 61(3) of the Act, 2017, it is found that the said proceedings are only consequential i.e. when the Proper Officer reaches to a conclusion that the reply is not satisfactory. In the letter issued on 23.02.2023, while ascertaining the liability of the petitioner under Section 74 (5) of the Act, the concerned Proper Officer also mentions that reply to notice under Section 61 is not found satisfactory. Question r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to the notice and was intimated, vide GST ASMT-12 on 28.02.2023 that their reply had been found to be satisfactory, and no further action is required to be taken in the matter for the financial year 2017-18. 4. At the same time, on 23.02.2023, an intimation under Rule 142 (1) (A) in Form GST DRC 01A was issued for FY 2017-18, wherein it was mentioned that reply to the notice under Section 61 in Form ASMT-10 of GST Act, 2017 was not found to be satisfactory and the demand was, therefore, raised for a sum of Rs. 17,96,557/-. 5. Learned counsel for the petitioner submits that the reply having been found satisfactory and intimation having been received of no further action to be taken against them, vide letter dated 28.02.2023, the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has supported the order and submitted that as the proceedings under Section 74 (5) of the Act stood initiated on 23.02.2023, the order of dropping the proceedings under Section 61 on 28.02.2023 i.e. later on, was obviously erroneous and treating the same so, the Authority has proceeded. Therefore, there is no need of intereference. Learned State counsel further submits that the petitioner has not filed any reply to the proceedings initiated, vide notice dated 23.02.2023, under Section 74 (5) of the Act and also did not upload any documentary evidence to prove the genuineness of the ITC claim, and therefore, the order dated 14.06.2023 passed by the respondents, does not warrant any interference. 7. We have considered the submissions addres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. and the other is Section 74 (5) of the Act which is a provision before initiating the proceedings under Section 74 (1) of the Act. For reference, same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory. 12. Thus, there are two different views expressed by the same Proper Officer, one while intimating the liability under Section 74 (5) of the Act and the other by subsequently dropping the proceedings under Section 61 (2) on 28.02.2023. 13. Therefore, it can be presumed that after the notice was given under Section 74 (5) of the Act, the Authority has reached to the conclusion that no additional demand is payable/chargeable and therefore, the proceedings stand dropped. Thus, on that day when the order was passed on 28.02.2023, proceedings initiated on 23.02.2023 would also stand closed and the Authority could not have thereafter again issued notice under Section 74 (1) of the Act. The entire proceedings after passing of order on 28.02.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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