M/S Libra International Limited vs. Assistant Commissioner Commercial Tax And Another
Held
The Court held that the challenge to the order dated 15.02.2018 is barred by laches due to the belated stage of filing the writ petition. This is further supported by the petitioner's claim of having deposited the entire tax and penalty, which, under Section 129(5) of the Act, deems all proceedings in respect of the notice to be concluded. Regarding the GST DRC-07 dated 18.09.2020, the Court observed that if the petitioner has indeed made the full payment of tax and penalty, they should submit proof of payment to the concerned authority and apply for rectification or withdrawal of the order. The Court did not explicitly decide on the validity of the DRC-07 itself but provided a procedural recourse for the petitioner.
Facts
The petitioner, M/s Libra International Limited, filed a writ petition challenging two orders. The first order, dated 15.02.2018, was passed by the Assistant Commissioner, Commercial Tax, under Section 129(3) of the UPGST Act, 2017, demanding tax of Rs. 1,01,844/- and an equivalent penalty of Rs. 1,01,844/-, totaling Rs. 2,03,688/-. This order arose from the interception of the petitioner's goods and vehicle on 11.02.2018 for alleged transportation without an E-Way Bill. The petitioner claims to have deposited the tax and penalty amount via demand draft on 14.02.2018. However, the petitioner later received a GST DRC-07 dated 18.09.2020, detailing the demand under Section 129 of the Act, which prompted the filing of this writ petition.
Key Issues
1. Whether the challenge to the order dated 15.02.2018 passed under Section 129(3) of the UPGST Act, 2017, is maintainable at this stage, considering the delay and the petitioner's claim of payment? The petitioner argued that they have deposited the tax and penalty, and despite this, a subsequent demand notice was issued. The respondent contended that the order dated 15.02.2018 has attained finality and the writ petition is barred by laches. The respondent also argued that as per Section 138(5) of the Act, all proceedings are deemed concluded upon payment. 2. Whether the GST DRC-07 dated 18.09.2020, which reflects the demand, can be quashed? The petitioner sought to quash this order. The respondent suggested that if the petitioner has indeed made the payment, they should apply for rectification or withdrawal of the order uploaded in FORM GST DRC-07 by providing proof of payment.
Sections Cited
Section 129, Section 138, Rule 142, Section 161
AI-generated summary — verify with the full judgment below
1 A.F.R. Court No. 5 Case : WRIT TAX No. 665 of 2020 Petitioner : M/S Libra International Limited Respondent : Assistant Commissioner Commercial Tax And Another Counsel for Petitioner : Suyash Agarwal Counsel for Respondent : C.S.C.,A.S.G.I. Hon'ble Surya Prakash Kesarwani,J. Hon'ble Dr. Yogendra Kumar Srivastava,J.
Heard Sri Suyash Agarwal, learned counsel for the petitioner and Sri C.B. Tripathi, learned Special Counsel for respondent no.1. 2. This writ petition has been filed praying for following reliefs : "I. Issue a writ, order or direction in the nature of Certiorari quashing the order no.731 dated 15.2.2018 passed by Respondent no.1 u/s 129(3) of the UPGST Act (Annexure No. 6) II Issue a writ, order or direction in nature of certiorari quashing GST DRC07 dated 18.9.2020 (Annexure9) III. Issue any other writ, order or direction in favour of the petitioner which this Hon'ble Court deems fit in the facts and circumstances of the case. IV. Award cost of the petition to the petitioner."
Pleadings of the writ petition indicate that the goods and vehicle of the petitioner were
The judgment continues below.
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