M/S Crs Mining Represented Through Its Propeirtor Sri Rajesh Kumar Sharma vs. The State Of Jharkhand

The State of Jharkhand

The Commissioner of State Taxes, Ranchi

The State Tax Officer, Chaibasa Circle, District-Chaibasa --- Respondents --- CORAM: Hon’ble Mr. Justice Aparesh Kumar Singh

Writ petition has been preferred with the following prayers: A. For issuance of an appropriate writ(s), order(s) or direction(s) holding that the service of a Show Cause Notice under sub- section (1) of Section 73 of the Jharkhand Goods and Services Tax Act, 2017 is a condition precedent for issuance of any Order Under Section 73(9) ibid or any other provisions of the Act. B. For issuance of an appropriate writ(s), order(s) or direction (s) holding that in the absence of the service of the Show Cause Notice to be issued under sub-Section (1) of Section 73 of the Jharkhand Goods and Services Tax Act, 2017, the Summary to Show Cause Notice dated 11-03-2022 (Annexure-2) in FORM DRC-01 is void ab initio and accordingly entire proceeding thereunder is liable to be quashed. C. For issuance of an appropriate writ, order or direction, for quashing the Summary to Show Cause Notice dated 11-03-2022 in FORM DRC-01 (Annexure-2) issued under Rule 142(1) of the Jharkhand Goods and Services Tax Rules, 2017 without issuing mandatory Show Cause Notice.

Learned counsel for the petitioner relies upon the decision of this Court in W.P.(T) No. 2659 of 2021 [ M/s. NKAS SERVICE PRIVATE LIMITED] dated 9th February, 2022 in order to support the challenge. He submits that this Court has in the case of M/s. NKAS Services Private Limited, quashed the summary of show- cause notice contained in FORM DRC-01 on the ground that it does not fulfil the ingredients of a proper show-cause notice as is contemplated under Section 73(1) of Jharkhand Goods and Services Tax Act, 2017 ( in short ‘JGST Act’). In the present case also, similar is the situation. Therefore, the proceedings even if allowed to reach the stage of adjudication, would be vitiated on the grounds of violation of principles of nature justice in the absence of a proper show-cause. Therefore, the prayer may be allowed.

Respondents have filed counter affidavit. Learned counsel for the Respondent-State, Mr. Rahul Saboo, G.P.-II has referred to the contents of the counter affidavit which relate to service of notice in Form ASMT- I0 intimating the discrepancies in GSTR-3B Return of the petitioner for the financial year 2019-20 which remained unreplied. He has also stated that no detailed show cause notice was issued upon the petitioner in terms of Section 73(1) of JGST Act. At para-10 of counter affidavit, it has also been stated that since the proceedings are at the initiation level, a detailed show cause notice along with fresh copy of summary of show cause notice may be served upon the petitioner before adjudication of the case.

We have considered the submission of learned counsel for the parties and taken note of the relevant pleadings placed from the record. Since the respondents also admit the absence of a proper show-cause notice as is contemplated under Section 73(1) of JGST Act and that the legal position in this regard stands settled by the decision of this Court in the case of M/s. NKAS Services Private Limited, Kolkata (supra), the impugned show cause notice dated 11th March, 2022 (Annexure-2) in FORM DRC-07 is quashed. Respondents are at liberty to initiate the proceedings by issuance of proper show cause notice along with the summary of show-cause notice in FORM DRC-01 upon the petitioner, in accordance with law. The writ petition is allowed to the extent indicated hereinabove.