Case Title | Gulati Enterprises Vs Central Board of Indirect Taxes and Customs Ors. |
Court | Delhi High Court |
Honorable Judges | Justice Rajeev Shakdher and Justice Tara Vitasta Ganju |
Citation | 2022 (5) GSTPanacea 110 HC Delhi |
Judgement Date | 18-May-2022 |
Council for Petitioner | Vineet Bhatia |
Council for UOI | |
Council for State | Harpreet Singh and Suhani Mathur |
The Delhi High Court bench of Justice Rajeev Shakdher and Justice Tara Vitasta Ganju has held that Voluntary statement recorded before the officer cannot be substituted with pre show cause notice required under rule 142(1A) of CGST Act,2017
FACTS OF THE CASE
The petitioner(proprietorship concern) was issued show cause notice under section 73 and section 74 of CGST Act, read with rule 142(1A) of CGST Act, 2017 for demand(tax payment/interest/penalty). The show cause notice was issued to assessee and other associate concern in which the assesee (petitioner) was the only authorized signatory.
The time limit to reply of the SCN was within 30 days from the receipt of notice.
The appellant filed this writ on the ground that pre- show cause notice conditions were not being adhered before issuing this SCN as per rule 142(1A) of CGST Act, section 74 and section 73 of CGST Act.
The respondent(tax authority) here submitted that as was the matter of fact and rules kicked off of GST, we had no scope and time to fulfilment of pre show cause notice conditios. It has been further submitted that statutory form GST DRC01A was issued with crystallize tax components and mentioning the period for which tax is claimed after obtaining voluntary statement before the concerned officer.
COURT HELD
The court has been by taking reference of case 2021 of Back office IT Solutions Vs Union of India, found that before amended provisions of Rule 142(1A) of CGST Act,2017, it was mandatory to fulfilment the requirement of Pre SCN conditions after proper consultation of Joint commissioner and other as may be prescribed in the provision of Section 73 and section 74 of CGST Act.
Further taking the reference of Omaxe New Chandigarh Developers P Ltd Vs Union of India, it was found , wherein under section 14 of Central Exice Act 1944 perusant with Service Tax section 88 , any voluntary statement recorded with senior intelligent officer is not a substitute of Pre- Show Cause Notice under un-amended rule 1429(1A) of CGST Act,2017 up to 15th Oct 2020.
Hence this writ application is allowed in favour of petitioner, The writ petition is disposed of in the aforesaid terms, consequently all pending application in this matter shall stand closed.
ANALYSIS OF THE JUDGEMENT
The pre show cause notice condition, must be fulfilled before issuing any show cause notice to assesee before 15th Oct 2020 un-amended provision of rule 142(1A) of CGST Act, 2017. Voluntary statement recorded with the officer cannot substitute the condition of Pre-SCN.
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