payment of due tax
Case Title | M/s Nkas Services Private Limited vs The State of Jharkand & Ors. |
Court | Jharkhand High Court |
Honorable Judges | Justice Aparesh Kumar Singh & Justice Deepak Roshan |
Citation | 2022 (1) GSTPanacea 266 HC Jharkhand W.P.(T) No 2659 of 2021 |
Judgement Date | 10-January-2022 |
Council for Petitioner | Kartik Kurmy N.K.Pasari |
Council for Respondent | P.A.S.Pati,G.A.-II |
Section | Section 73 of the Act. |
In Favour of | Favour of Asseesee |
The Jharkhand High Court bench of Justice Aparesh Kumar Singh & Justice Deepak Roshan has held that the show cause notice does not even contain the brief facts of the case or the grounds alleged, in the absence of the ingredients of a proper show cause notice are unsustainable in law.
FACTS OF THE CASE
Petitioner has challenge to the impugned show cause notice dated 14th June, 2021 (Annexure-1) issued by the respondent No.3 under Section 73 of the Jharkhand Goods & Services Tax Act, 2017.
And the summary of show cause notice in FORM- DRC-01 dated 14th June, 2021 (Annexure 2) also issued by respondent No.3 in exercise of power under Rule 142 (1) (a) of the Jharkhand Goods and Services Tax Rules, 2017 that the impugned show cause notice Annexure-1 lacks in the very ingredient of a proper show cause notice as required under Section 73 of the Act.
The summary of show cause notice in FORM-GST-DRC- 01 is to be issued in an electronic form along with a notice for the purposes of intimation to the assesse and the same by its very nomenclature cannot be a substitute to the show cause notice which if lacks in the essential ingredients of a proper show cause notice.
The show cause notice does not even contain the brief facts of the case or the grounds alleged even the summary of the show cause notice does not contain specific facts and allegations showing evasion of payment of due tax to the Government.
payment of due tax
COURT HELD
Considering the facts as recorded, held that in the absence of the ingredients of a proper show cause notice the petitioner
Is being denied proper opportunity of defending himself. Such a proceeding could end up in vague result and would also not be in the interest of the revenue.
The impugned notices at Annexure-1 and 2 therefore, are unsustainable in law and on facts on same principles as has been held in the case of the petitioner in W.P.(T) No. 2444 of 2021.
payment of due tax
ANALYSIS OF THE JUDGEMENT
As per Section 75 (7) to indicate that in no case the amount of tax, interest and penalty demanded can be in the excess of the amounts specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice.
The notice does not contained any specific grounds as such.
However, on being specifically as asked as to how the summary of a show cause notice as it is in its present format Annexure-2 could in itself be a substitute for the show cause notice stipulated in Section 73 of the JGST Act, seeks time to obtain instruction.
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M/s Nkas Services Private Limited
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