Gps Automobiles PVT. LTD vs. Union Of INDIA - Rajasthan High Court, 15 May 2024

Cause title — parties, addresses and appearances

[2024:RJ-JP:22915-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 4029/2020 Gps Automobiles Pvt. Ltd, Addressed At 3, Ground Floor, Mg Showroom, Choudhary Charan Singh Colony, Tonk Road, Jaipur- 302011,(Presently Addressed At C-345 Hans Marg, Malviya Nagar, Jaipur (Rajasthan) - 302017) Through Its Director And Authorised Signatory Shri Gaurav Jain. ----Petitioner Versus 1. Union Of India, Through Revenue Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi-11001 2. State Of Rajasthan, Through Joint Secretary Finance Department (Tax Division), 1St Floor, Main Building, Government Secretariat, Jaipur - 302005 3. Commissioner Of Goods And Services Tax, Commissionerate Jaipur, Ncr Building, Statue Circle, C- Scheme, Jaipur - 302005 (Raj.) 4. Superintendent, Central Goods And Services Tax, Range- Xxiii (Division-E), Cgst Building, Sector-10, Vidhyadhar Nagar, Jaipur - 302023 (Rajasthan) ----Respondents For Petitioner(s) : Mr. Daksh Pareek with Mr. Arjun Singh For Respondent(s) : HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE BHUWAN GOYAL

Order 15/05/2024

By this petition under Article 226 of the Constitution of India, the petitioner seeks to assail the correctness and validity of notice dated 08.02.2020 by which GST-interest liability on account of delay in payment of GST has been issued.

[2024:RJ-JP:22915-DB] (2 of 3) [CW-4029/2020]

Learned counsel for the petitioner would submit that the aforesaid notice has been issued on a pre-judged determination of interest liability without affording any opportunity of hearing.

We find that the notice was issued against the petitioner way-back in the year 2020. The contents of the notice show that the respondents have proposed imposition of interest on alleged delay in payment of GST. Para 4 & 5 of the aforesaid notice reads as under:- “4.Therefore, you are requested to work out the exact quantum of interest liability and deposit the same through FORM DRC-03 within 3 days of receipt of this letter and submit the same in this Office. 5.In case the opportunity for voluntary compliance as suggested is not availed, appropriate action for recovery of interest shall be initiated under Section 79 of CGST Act, 2017 and corresponding provisions under IGST Act, 2017 and RGST Act, 2017.”

The contents of the notice clearly show that in case opportunity of voluntary compliance as suggested was not availed, appropriate action for recovery of interest shall be initiated under Section 79 of the CGST Act, 2017 and corresponding provisions under IGST Act, 2017 and RGST Act, 2017. 5. Therefore, the notice only gives the petitioner an opportunity to make voluntary compliance. It goes without saying that if the petitioner is not accepting the same and not making voluntary compliance, the respondents would be initiating proceedings under Section 79 of the CGST Act, 2017. There is no reason for us at this stage to hold that the petitioner would not be given proper opportunity of hearing against proposed recovery.

We find that the petitioner has chosen not to file reply to the aforesaid notice dated 08.02.2020 and filed this petition in the

[2024:RJ-JP:22915-DB] (3 of 3) [CW-4029/2020] year 2020. The petitioner is required to submit a response to notice dated 08.02.2020. If the petitioner is not willing for voluntary compliance, it will be open for the respondents to proceed against the petitioner under Section 79 of the CGST Act, 2017. 7. Before parting with the case, we must hasten to add here that we have not commented upon the merits of the case.

The writ petition is, accordingly, disposed of. (BHUWAN GOYAL),J (MANINDRA MOHAN SHRIVASTAVA),CJ Naval Kishore-RAHUL/32