show cause notice under GST
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Case Title |
HBS Alloys Pvt Ltd vs State of Gujarat |
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Court |
Gujarat High Court |
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Honorable Judges |
Justices J.B Pardiwala and Justice Nisha M.Thakore |
|
Citation |
2022 (1) GSTPanacea 270 HC Gujarat R/SPECIAL CIVIL APPLICATION NO. 800 of 2022 |
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Judgement Date |
21-January-2022 |
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Council for Petitioner |
Mr. Hiren J Trivedi |
|
Council for Respondent |
Ms. Utkarsh Sharma |
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In Favor Of |
Petitioner |
|
Section |
Rule 141 of the CGST Act,2017 |
The Gujarat High Court, Ahmedabad bench of Justices J.B Pardiwala and Nisha M Thakore, has held that we order provisional release of the goods and conveyance pending the confiscation proceedings.
show cause notice under GST
FACTS OF THE CASE
The case was that the petitioner had transported the goods in a Truck. The Petitioner had mentioned the place of delivery at Chandisar, Palanpur. The mobile squad intercepted and took notice of the fact that the delivery was not to be at Chandisar, Palanpur, but the goods were proceeding to Chandisar for delivery. The GST Department straightaway issued a show cause notice.
The Petitioner stated that that there is no good ground available with the department to straightway issue a show cause notice and that there is no good ground available with the department to straightway issue a show cause notice. The Petitioner had already deposited an amount of Rs.3,60,352/- (Rupees Three Lakh Sixty Thousand Three Hundred Fifty Two only) towards tax and penalty.
show cause notice under GST
COURT HELD
The Court held that the writ applicant has already deposited an amount of Rs.3,60,352/- towards tax and penalty, we order provisional release of the goods and conveyance pending the confiscation proceedings. The writ applicant shall file an undertaking on oath with the concerned authority that in the event if the goods and vehicle is confiscated by way of a final order that may be passed under Section 130 of the Act, then he shall pay the redemption fine with interest subject to his right to challenge such order by way of an appeal before the appellate authority under Section 107 of the Act.
show cause notice under GST
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse that the right to issue a show cause notice shall be carried on the basis of sufficient reasons which shall be exercised with due care. If any amount due to the government is not paid, the Proper Officer may issue a GST show-cause notice to the registered taxpayer who is obligated to pay the amount, mandating them to show cause why the specified amount was not paid. However, this power shall be exercised only on sufficient and appropriate reasons.
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