Steiner INDIA Limited vs. Union Of INDIA And Ors.
Held
The Court held that the order passed under Section 73(9) of the WBGST/CGST Act, 2017, dated April 9, 2024, and the demand raised in Form GST DRC-07 dated April 7, 2024, for the tax period April 2018 to March 2019, could not be sustained. This decision was based on the acknowledged fact that there had been no proper service of the show cause notice in Form GST DRC-01 dated September 11, 2023. Consequently, the demand raised was quashed. The Court further directed the proper officer to adjudicate upon the show cause notice after giving the petitioner an opportunity of hearing, in accordance with the law, and to dispose of the matter expeditiously, preferably within 8 weeks from the communication of the order. No issue was expressly left undecided.
Facts
The petitioner, Steiner India Limited, challenged an order passed under Section 73(9) of the WBGST/CGST Act, 2017, dated April 9, 2024, and a demand raised in Form GST DRC-07 dated April 7, 2024. These actions pertained to the tax period from April 2018 to March 2019. The core of the petitioner's grievance was that there had been no proper service of the show cause notice in Form GST DRC-01 dated September 11, 2023. This lack of proper service was acknowledged by the learned Additional Government Pleader appearing for the State.
Key Issues
1. Whether the order passed under Section 73(9) of the WBGST/CGST Act, 2017, dated April 9, 2024, and the consequential demand raised in Form GST DRC-07 dated April 7, 2024, are sustainable in light of the alleged non-service of the show cause notice in Form GST DRC-01 dated September 11, 2023, for the tax period April 2018 to March 2019. The petitioner argued that the entire adjudication process was vitiated due to the improper service of the show cause notice, rendering the subsequent order and demand invalid. The revenue, represented by the Union of India and the State, acknowledged the issue of non-service of the show cause notice.
Sections Cited
Section 73(9)
AI-generated summary — verify with the full judgment below
2024 Item No. AD 5 Saswata
W.P.A. 17567 of 2024 Steiner India Limited versus Union of India & Ors. Mr. Bharat Raichandani Mr. Victor Chatterjee Mr. Barnamoy Basak …For the petitioner Mr. Vipul Kundalia Mr. Amit Sharma …For the Union of India Mr. Anirban Ray, Ld. GP Mr. Md. T.M.Siddiqui, Ld. AGP Mr. T. Chakraborty Mr. S. Sanyal …For the State
Having heard the learned advocates appearing for the respective parties and taking into consideration the fact that there had been no proper service of the show cause notice in Form GST DRC – 01 dated 11th September 2023 for the tax period from April 2018 to March 2019 as has been acknowledged by Mr. Siddiqui, learned Additional Government Pleader, I am of the view that the order passed under Section 73(9) of the WBGST/CGST Act, 2017(hereinafter referred to as the “said Act”) dated 9th April 2024 cannot be sustained and consequentially the demand raised by the respondents in Form GST DRC – 07 dated 7th April 2024 for the tax period from April 2018 to March 2019 stands quashed.
Since, the petitioner is now aware of the show cause notice issued in Form GST DRC – 01 dated 11th September 2023 and has already resp
The judgment continues below.
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