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Garg Sons Estate Promoters Pvt. Ltd. vs Commissioner of State Taxes and Excise

Case Title

Garg Sons Estate Promoters Pvt. Ltd. vs Commissioner of State Taxes & Excise

Court

Himachal Pradesh High Court

Honorable Judges

Justice Bipin C. Negi

Citation

2024 (01) GSTPanacea 18 HC Himachal Pradesh

CWP No. 804 of 2024 and CMP No. 1373 of 2024

Judgment Date

23-January-2024

Summary of Annexure P-2 dated 03.07.2021:

Respondent No. 2 issued summons under Section 70 of the HPGST/CGST Act., 2017 to the petitioner. The period under scrutiny is from 01.01.2021 to 30.06.2021. The proceedings focus on the supplies received by the petitioner from M/S R.J. Trading.

The petitioner responded to the summons by filing a reply on 21.10.2021, which is appended along with the present petition as Annexure P-4. Upon examination of the reply submitted by the petitioner, it was observed that… [details about the content and findings of the reply can be included here if available].

The Annexure P-2 provides an overview of the summoning process and indicates the initiation of proceedings related to the supplies received by the petitioner from M/S R.J. Trading during the specified period. It sets the context for further legal proceedings and actions taken by both parties involved.

Respondent No. 2 issued a show cause notice under Section 74(1) of the HPGST/CGST Act, 2017, on 12th January 2023. Following this, through Annexure P-10 dated 20th May 2023, tax liability of GST (CGST + HGST) was imposed on the petitioner under Section 74(9) of the aforementioned Act, along with interest and penalty.

The petitioner’s counsel has brought to the attention of the court Annexure P-3, which is a summons issued under Section 70 of the Central Goods and Excise Taxation Act, 2017, by the Central Authorities on 12th August 2021. This summons was related to the period from 1st July 2017 to 30th June 2021. The summons resulted in an order dated 21st December 2023, reflected in Annexure P-12. According to Annexure P-12, concerning the petitioner’s dealings with M/S R.J. Trading Company, the GST liability amounted to Rs. 2,52,49,764/- for the mentioned period. This amount was deposited by the petitioner with the Central authorities towards GST, leading to the closure of proceedings as evidenced by Annexure P-12 dated 21st December 2023.

Given these facts and circumstances, the petitioner’s counsel… [details might follow regarding the argument or plea made by the petitioner’s counsel]

In the matter concerning the petitioner’s dealings with M/S R.J. Trading Company, it is evident that there is a duplication of proceedings, leading to undue vexation for the petitioner regarding the liability in question. The petitioner is essentially being subjected to double jeopardy.

Upon thorough examination of the documents presented, it is clear that there exists a prima facie case in favor of the petitioner. Furthermore, the balance of convenience decidedly tilts in favor of the petitioner. There is a real and imminent risk of grave irreparable loss, which cannot be adequately compensated for by monetary means, if the respondents are allowed to enforce Annexure P-10, the order dated 20.05.2023.

In light of these circumstances, the impugned order dated 20.05.2023 is hereby stayed until further notice. This decision is made to prevent further harm or injustice to the petitioner. Consequently, the application is deemed disposed of.

Download Pdf:
Garg Sons Estate Promoters Pvt. Ltd.

For Reference Visit:
Himachal Pradesh High Court

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