9911796707
TMI Blog2024 (12) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... nover, increase of valuation of the company in order to take benefit of higher loans from the bank or financial corporation and to avail fake input tax credit. The total period during which these fake ITCs were generated is from 2017 to 2022, therefore, a joint assessment is liable to be conducted of six companies / noticee in the aforesaid period. In such type of circular trading matters, the assessment can be done by calling all the firm / companies involved in trading in the relevant years by the proper office. This matter cannot be proceeded individually in a given facts and circumstances under Section 74 of CGST Act, 2017. Except petitioner, remaining 4 companies have not approached this Court challenging the show-cause notice. In orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted at Indore. The respondents received an information that few units were engaged in availing / passing of ineligible Input Tax Credit (ITC) to certain units without actual supply / receipt of goods by way of circular trading. Based on the said information, a search was conducted under Section 67(2) of the CGST Act, 2017. The first search was conducted on 07.01.2022 at the premises of M/s Namrata Trade Star and M/s Sagar Steels Suppliers (petitioner No.2). Thereafter, premises of M/s Panjon Limited was searched on 10.01.2022 and it was found that document / record regarding purchase invoice, sale invoice are being maintained at their Head Office at Panjon Farm House, Airport Road, Indore. The statement of proprietor and other concerned pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ineligible input tax of Rs.1,74,82,834/- by showing the fake supply of taxable value of Rs.14,45,73,325/- in the financial year 2017-18, 2018-19 2019-20 and so far as the petitioner No.2 is concerned, the allegation is that the firm has passed on the ineligible input tax of Rs.3,10,13,486/- by showing the fake supply of taxable value of Rs.25,84,45,714/- in the financial year 2017-18, 2018- 19. 05. The petitioners have already filed a reply to the show-cause notice and approached this Court challenging the validity of impugned show-cause notice inter alia on the ground that the impugned show-cause notice came to be uploaded in the electronic form and summary thereof and an official web portal of the GST department only on 13.03.2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that there cannot be common or joint show-cause notice for multiple assessment years, the authorities are required to issue a notice for each assessment year, therefore, this impugned notice is liable to be quashed however, the liberty can be granted to the respondent to issue fresh multiple notices. Heard. 09. As discussed above, in this case, the search was conducted initially in the premises of M/s Panjon Limited and the material collected from the premises revealed that as many as 5 firms are involved in circular trading with a common object to inflate their turnover, increase of valuation of the company in order to take benefit of higher loans from the bank or financial corporation and to avail fake input tax credit. The total period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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