Bpl-Kpl (Jv), Through Its Authorised Signatory Md Saheb Kashim vs. The State Of Jharkhand, Through Its Secretary, Department Of State Tax

Held

The Court noted that the respondents' counsel submitted that an identical issue had been disposed of by a Bench of this Court vide order dated 5th September, 2024, in W.P. (T) No. 4882 of 2024. Upon perusing that order, the Court found that in a similar factual background, liberty was granted to the petitioner to explain the reasons sought in the notice. The authority was then directed to consider the explanation and take follow-up action in accordance with law. The petitioner's counsel did not dispute this aspect. Therefore, the writ petition was disposed of by giving liberty to the petitioner to explain the reasons sought in the impugned notice within two weeks. The authority was directed to consider the explanation in accordance with law and take follow-up action as per the mandate of Section 61 of the JGST Act.

Facts

The petitioner, BPL-KPL(JV), filed a writ petition challenging a scrutiny notice in Form GST ASMT-10 dated 23.09.2024 issued by the Assistant Commissioner of State Tax, Ranchi West. The petitioner also challenged a show cause notice along with a summary in Form GST DRC-01 dated 17.05.2025 for the Financial Year 2020-21, alleging it was issued under Section 74 of the CGST/JGST Act, 2017, for suppression of facts. The petitioner argued this was inconsistent as a show cause notice for the same issue for FY 2021-22 was issued under Section 73. The petitioner sought quashing of these notices and an injunction against further action on the show cause notice for FY 2020-21.

Key Issues

1. Whether the scrutiny notice in Form GST ASMT-10 dated 23.09.2024, issued by the Respondent No. 3, is beyond the scope of Section 61 of the CGST/JGST Act, 2017? The petitioner contended that the notice was issued beyond the scope of Section 61. The respondents did not present specific arguments on this point, relying on a previous order. 2. Whether the show cause notice in Form GST DRC-01 dated 17.05.2025 for FY 2020-21, issued under Section 74 of the CGST/JGST Act, 2017, alleging suppression of facts, is maintainable when a notice for FY 2021-22 for the same issue was issued under Section 73 of the CGST/JGST Act, 2017? The petitioner argued that the issuance of a Section 74 notice for FY 2020-21 was inconsistent with the Section 73 notice for FY 2021-22 for the same issue. The respondents relied on a previous order of the Court.