M/S New Fashion Garments vs. State Of Uttarakhand

Held

The Court noted the petitioner's contention that the amounts demanded in the impugned order had already been deposited. Since the Revenue's counsel had no instructions on this point, the Court permitted the petitioner to file a rectification application before the Proper Officer, accompanied by documentary evidence. The Court directed that this application must be decided by the Proper Officer within four weeks from the date of its filing. Furthermore, any recovery from the petitioner in pursuance of the impugned order was made conditional upon the outcome of the rectification application. The writ petition was disposed of with these directions.

Facts

The petitioner, M/s New Fashion Garments, filed a writ petition challenging an order dated 29.11.2025, passed by respondent no. 3 under Section 73 of the Uttarakhand Goods and Services Tax Act, 2017. This order imposed a tax liability of Rs. 1,10,056.20, along with interest of Rs. 1,17,263.15 and a penalty of Rs. 21,005.62. The liability was determined due to a mismatch between the Input Tax Credit (ITC) claimed in GSTR-3B and that reflected in GSTR-2A/2B. The petitioner contended that these amounts had already been deposited prior to the impugned order. The Revenue's counsel stated they had no instructions regarding this aspect.

Key Issues

1. Whether the petitioner had deposited the amounts demanded in the impugned order prior to its passing, as contended by the petitioner? The petitioner argued that the amounts demanded by the impugned order, including tax, interest, and penalty, had already been deposited by the firm before the order was issued. They relied on documents annexed with the writ petition to support this claim. The Revenue, represented by the Standing Counsel, stated that they had not been provided with any instructions regarding the petitioner's contention of prior deposit.