M/S Ethos LTD vs. The Additional Commissioner CGST Audit And Anr
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Cause title — parties, addresses and appearances
order/judgment
CWP No 4. show cause goods which goods of ano with juri ic would exami said to be hav not only in U such as Assa Maharashtra, West Bengal the responde raise the dem the petitioner
Act, the sup makes a taxa with Section supply of go 15 of the CG on the recom such a mann person. 6. 26.07.2024, namely, cust o. 23062 of 2024 Learned counsel for the petitio notice demands non-payment o have never been supplied in th other States. It is submitted tha tion which was not available to ine the show cause notice at this ving any juri iction. It is stated U. T. Chandigarh but also othe am, New Delhi, Gujarat, Haryan , Punjab, Rajasthan, Tamil Nadu l and the petitioner has duly di ents have erroneously assumed mand and also hold that there ha r by fraud to avail the benefit of It is further submitted that as p pplier is required to obtain regi able supply and Article 246A o n 9 of the CGST Act provides oods or services or both on the v GST Act and at such rates as may mmendations of the GST Council ner as may be prescribed and w It is his submission that as the amounts have been indicat tomer belongs to Chandigarh -2- oner further submitted that the of tax in relation to supply of he State of Punjab and relates to at the authority has closed itself o it and submits that this Court stage as the authority cannot be d that the supply has taken place er registrations of the petitioner na, Karnataka, Madhya Pradesh, u, Telengana, Uttar Pradesh and ischarged tax therein. However, d juri iction and proceeded to s been an attempt on the part of ITC. per Section 22(1) of the CGST istration in the State where he f the Constitution of India read for levy of GST on intra-State value determined under Section y be notified by the Government l. Such tax is to be calculated in would be payable by the taxable s per the audit memo dated ted under three different heads, and redeemed in other States, e f o f t e e r , d , o f T e d e n t n e d , , VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment
CWP No Customer bel belongs to o demand has b of the place w submits that juri ictional 7. 8. notice issued notice. The p show cause n show cause n record for th internal Audi in terms of S 9. to issue notic noticed and t on the part of of the CGST
Act, 2016 pr p o. 23062 of 2024 longs to other States and redeem other States and redeemed in C been raised on the petitioner at C where the vouchers have been i t the show cause notice has l error. We have carefully noticed the su We find that the petitioner has d under Section 74 of the CGS petitioner has directly approached notice on the ground of juri i notice has emanated on the bas he period 2017-18, 2018-19, 2 it Team of Cirlce-1, Audit Comm ection 65 of the CGST Act. The petitioner’s objection that th ce to it on the assumption of havi to be rejected as misconceived. f the respondents in issuing show Act. Sections 4, 5 and 6(2)(b) of the C rovides as under:- “4. Appointment of Offic (1) The Board may, in ad notified by the Government u persons as it may think fit to be -3- med in other States and Customer handigarh. However, the entire Chandigarh location irrespective issued or utilized. He, therefore, s been issued by committing ubmissions. not submitted any reply to the ST Act which is a show cause d this Court challenging the said iction. We also noticed that the is of GST audit report after the 2019-20 was examined by the missionerate CGST, Chandigarh he officer having no juri iction ing its business in other States is There is no juri ictional error w cause notice under Section 74 Central Goods and Services Tax cers. ddition to the officers as may be under section 3, appoint such the officers under this Act. r e e , g e e d e e e h n s r 4 x e h VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment
CWP No p o. 23062 of 2024 (2) Without prejudice to t the Board may, by order, auth clauses (a) to (h) of section 3 to below the rank of Assistant Com administration of this Act.
Powers of officers (1) Subject to such con Board may impose, an officer powers and discharge the dutie under this Act. (2) An officer of central t discharge the duties conferred any other officer of central tax w (3) The Commissioner m and limitations as may be sp delegate his powers to any othe him. (4) Notwithstanding anyt an Appellate Authority shall discharge the duties conferred o of central tax.
Authorisation of office Territory tax as proper office (1) Without prejudice to th officers appointed under the Act or the Union Territory G authorised to be the proper o Act, subject to such condition the recommendations of the C (2) Subject to the condition issued under sub-section (1) – -4- the provisions of sub-section (1), horise any officer referred to in o appoint officers of central tax mmissioner of central tax for the nditions and limitations as the of central tax may exercise the es conferred or imposed on him tax may exercise the powers and d or imposed under this Act on who is subordinate to him. may, subject to such conditions pecified in this behalf by him, er officer who is subordinate to thing contained in this section, not exercise the powers and or imposed on any other officer ers of State Tax or Union er in certain circumstances. he provisions of this Act, the State Goods and Services Tax Goods and Services Tax Act are officers for the purposes of this ns as the Government shall, on Council, by notification, specify ns specified in the notification –
n x e e e m d n s
o
d r n e x e s n n VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment
CWP No
Sections 4, 5 CGST Act ar be a proper o
proceedings b been paid or been wrongly mentioned th proceed.
notice, no pr same subject
the petitioner of Punjab, n initiate proce o. 23062 of 2024 (a) Where any proper this Act, he shall a State Goods and S Territory Goods authorized by the Act or the Union Te Act, as the case m juri ictional office tax; (b) where a proper off Services Tax Act or Services Tax Act h a subject matter, n by the proper offic subject matter.” Thus, the powers of the officers 5 of the CGST Act and those ap re the same. A person is appoint officer for the purpose of this Act Section 74(1) of the CGST by a proper officer where it app short paid or erroneously refund y availed or utilized by reason o herein, such proper officer is au As per Section 6(2)(b) of the C roceedings shall be initiated by matter. From above, it is apparent that r under Section 74(1) of the CGS no other officer from any other eedings and the question regardi -5- r officer issues an order under also issue and order under the Services Tax Act or the Union and Services Tax Act, as State Goods and Services Tax erritory Goods and Services Tax may be, under intimation to the er of State tax or Union territory ficer under the State Goods and r the Union Territory Goods and as initiated any proceedings on o proceedings shall be initiated cer under this Act on the same
who have been appointed under ppointed under Section 6 of the ted by the State is authorized to t. T Act provides for initiating pears to him that any tax has not ded or where input tax credit has of fraud, or for the purposes, as uthorized to issue the notice and CGST Act once he issues such any other proper officer on the once notice has been issued to ST Act by the State GST Officer r State would be authorized to ng evading of tax or availing of r e n s x x e y d d n d e r e o g t s s d h e o r o f VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment
CWP No wrongful inp examined by 11. No. 1661 of India and oth p p p f p p p
would have o. 23062 of 2024 put tax credit or other issues i the same officer alone. This Court on the question of pr 2022 M/s Stalwart Alloys Indi hers decided on 28.08.2024 hel “29. In the opinion of this Co used in Section 6(2)(b) of the A proceedings’. In the present c proceedings initiated for wrongf by fraudulent means. Thus, if proceedings by issuing notice u the period upto 22.07.2019, fo DGGI cannot be allowed to availment of input tax credit by f from 28.07.2019 to 20.01.2022. be contrary to the provisions c the Act.
It is to be noticed that directed the respondents to co place alone. Since the proceedi by the State authorities i.e. the Shahbad. The summons and wa and the entire record is availa record, there is no occasion to or the action of the State Ta proceedings pertaining to the pending before it by his l accordingly, quash the same a under the GST Act to proceed a terms of the provisions of the Ac In view of the above, we hold t the power to issue notice unde -6- ld as under: ourt, the word ‘subject matter’ Act would mean ‘the nature of case, thus, it would mean the gful availment of input tax credit the State has already initiated under Section 74 of the Act for or the same subject matter, the o initiate proceedings for the fraudulent means for the period . Such action, if allowed, would contained in Section 6 (2)(b) of earlier this Court had already onduct the proceedings at one ings have already been initiated Excise and Taxation Officer at rrants have already been issued ble with them. As has come on uphold the action of the DGGI Tax Officer in transferring the e petitioner firm which were letter dated 15.03.2022. We, and direct the State Tax Officer and conclude the proceedings in ct.” that the authority at Chandigarh er Section 74 of the CGST Act e P f ’ f e t d r e e d d f y e d t d n I e e
r n h t VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment aking/reasoned
Yes/N ortable
Yes/N -7- y in other States, and therefore, s relating to the challenge made he notice under Section 74 of the o the petitioner to take up all uthority would consider the reply peaking. If the petitioner is still eived, he would be free to avail r the provisions of the Act. esent writ petition is dismissed JEEV PRAKASH SHARMA)
JUDGE (SANJAY VASHISHT)
JUDGE No No , e e l y l l d VARINDER SINGH 2024.09.20 16:54 I attest to the accuracy and authencity of this order/judgment
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.