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Case Title |
Graziano Transmissioni India Pvt Ltd Vs State of Gujarat |
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Court |
Gujarat High Court |
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Honorable Judges |
Justice Sonia Gokani and Justice Gita Gopi |
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Citation |
2022 (6) GSTPanacea 112 HC Gujarat |
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Judgement Date |
23-June-2022 |
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Council for Petitioner |
Dharnendra Kumar Rana |
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Council for UOI |
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Council for State |
Saurin A Mehta |
The Gujrat High Court bench of Justice Sonia Gokani and Justice Gita Gopi has held that Assesee should be given proper opportunity of being heard while passing any final order in case of mistakenly reporting any supply in GST return.
FACTS OF THE CASE
The petitioner( an automobile component manufacturing concern registered in GST) was issued an order dated 25th Mar 2022 with summary order in form DRC-07 by the respondent. During the period of July 2017 to Mar 2018 the assessee exported some goods outside India through LUT without payment of tax as per the provisions of section 16 of IGST Act,2017. The assessee had also filed the GSTR1/9 correctly reported the turnover under zero rated supply but inadvertendly while filing GSTR 1 of September 2017 month , the same was reported as Exempted supply table.
The respondent submitted that the assessee (petitioner) is in gross violation of the provision of CGST Act, Gujrat Goods and Services Tax Act respectively. The assessee here by submitted in the reply that entire regime of GST had started in the same year, so happened mistakenly.
Assessee has also submitted all the required documents and proof related to the same export supply, which were asked for explaining the reasons and discrepancies.
The respondent however issued and responded on 27th July 2021 with the summary of GST liability of ITC claimed and for reversal of ITC under rule 42 and 43 of CGST. The DRC-01 was issued for the demand dated 10th Dec 2021 and 22nd Dec 2021
Without awaiting any response on 14th Feb 2022 a SCN was issued proposing demand and penalty nearly 7.3 crore which had also been replied dtd 26th Feb 2022 attaching all the proofs.
On 25th Mar 2022 the order was passed without giving any oppurtinity of being as per section 75(4) of CGST Act.
COURT HELD
After hearing both the learned counsel of the parties, the courts held that without entering into merits of the matter, and only on the grounds of non availment of personal hearing opportunity, this court deems fit quashing all the orders passed by the respondent for demand , penalty etc.
It is here by the directed by the court that the matter shall be proceeded as afresh and personal hearing opportunity shall be on 18th July 2022. None of the observations will come in the way of the parties in finally deciding the matter. Both the petitions stands disposed of accordingly. Direct service permitted.
ANALYSIS OF THE JUDGEMENT
No order shall be issued without giving fair opportunity of being heard to assessee in case turnover reported mistakenly in wrong table and the intentions are bonafied.
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Graziano Trasmissioni India Private Limited
For Reference Visit:
Gujrat High Court