Unique Speciality Chemicals vs Deputy Commissioner of State

1. This Petition under Article 226 of the Constitution of India is filed praying for the following reliefs:
“A. that the Hon’ble Court be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing and setting aside the Impugned Order dated 29 July 2022 being “Exhibit 

A” to the Petition;

B. that pending the hearing and final disposal of the Petition, the Hon’ble Court be pleased to stay the operation of the Impugned Order dated 29 July 2022 being “Exhibit A” to the Petition;

C. Ad-interim reliefs in terms of prayer clauses (B) above, 

D. For costs of this petition; and

E. For such other order as the Hon’ble Court may deem fit to pass in light of the facts and circumstances of the case.”

2. The relevant facts need to be noted. The case of the Petitioner is that in relation to the E-way bill in question, the taxable value of the E-way bill was Rs.3,081.60. However, the Petitioner had mistakenly punched the HSN Code in the “Taxable Value” column of the E-way bill which is “34049090” and, therefore, the system calculated the GST of Rs.61,28,836.20, which according to the Petitioner, resulted in a tax demand which is 1817 times what was really due and payable. The total demand with interest and liability was 3870 times than what was actually payable. It is the case of the Petitioner that there was no mismatch in credit since the same is reversed voluntarily much before the notice was issued on 11th March 2022, being show cause notice in Form DRC- 01A, but the mis match was between the GST payable as per E-way bill and the returned figures in the GSTR-3B.

3. On 19th May 2022, a show cause notice was issued to the Petitioner reiterating the contents of the pre show cause notice. On 13th June 2022, the Petitioner filed its reply to the show cause notice submitting all material showing that there was an error in the E-way bill and that it was an inadvertent mistake. All the relevant documents were also submitted to show that the Petitioner had already reversed inward tax credit. Thus, the e-way bill, documents relevant to the mistake and other invoices from the customer with
their E-way bills were all submitted for consideration of the Designated Officer in reply to the show cause notice. The Petitioner submitted additional documents as also submissions on the E-way Bill on 27th June 2022.

4. It is the case of the Petitioner that, despite all such material being furnished, the details of which are set out in the Petitioner’s letter dated 27th June 2022 addressed to the Designated Officer, the Designated Officer proceeded to pass an order on 29th July 2022, being an order in DRC-07, simplicitor recording that the information provided by the dealer is not tallying with scrutiny parameters, and hence, the office prepared the Order as per the details as set out. Being aggrieved by the said order, the Petitioner is before this Court.

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Unique Speciality Chemicals

For Reference Visit:
Bombay High Court

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GST Case Law