Sanjeet Kumar Bhagat vs. Commissioner Of State Tax State Of Jharkhand Jharkhand Goods And Service Tax

Facts

The petitioner, Sanjeet Kumar Bhagat, proprietor of M/s. Sanjeet Kumar Bhagat, filed a writ petition challenging a show cause notice dated 27.08.2020 issued by the Deputy Commissioner of State Tax (Respondent No. 2) under Section 73 of the Jharkhand Goods and Service Tax Act, 2017, for the period April 2018 to March 2019. The petitioner also challenged the Summary of Show Cause Notice in FORM GST DRC-01 and the Summary of Order in FORM GST DRC-07, both issued by Respondent No. 2. Further, the petitioner challenged an order dated 13.09.2021 passed by the Appellate Authority (Joint Commissioner, JGST, Godda, Dumka), which rejected the petitioner's appeal against the Summary of Order. The Appellate Authority rejected the appeal on the ground of "Non receipt of certified copies" without providing an opportunity of hearing. The petitioner contended that there was no difference in ITC amounts between GSTR3B and GSTR2A for the period in question.

Held

The High Court held that the rejection of the petitioner's appeal by the first appellate authority solely on the ground of non-receipt of certified copies was hyper-technical. The Court emphasized that an opportunity of hearing ought to have been granted to the petitioner, especially in tax matters which entail financial liability. The Court found that a hyper-technical view cannot be taken in such circumstances. Accordingly, the Court set aside the order passed by the appellate authority. The Court allowed the writ petition and directed the parties to appear before the appellate authority on or before 10th November, 2025. The appellate authority is to decide the appeal on merits as expeditiously as possible, preferably by 31st December, 2025. The Court did not explicitly address the arguments regarding the vagueness of the show cause notice or the jurisdiction of the DRC-01 and DRC-07 notices, as the matter was remitted back to the appellate authority.

Key Issues

1. Whether the Show Cause Notice dated 27.08.2020, issued under Section 73 of the Jharkhand Goods and Service Tax Act, 2017, is vague, lacks jurisdiction, and is a mechanical reproduction of statutory provisions, as argued by the petitioner? The petitioner contended that the notice does not disclose the specific offense or contravention and that a 100% penalty is not imposable under Section 73. 2. Whether the Summary of Show Cause Notice (FORM GST DRC-01) and Summary of Order (FORM GST DRC-07) are unsustainable and without jurisdiction, as argued by the petitioner? The petitioner argued these were issued without a proper show cause notice under Section 73. 3. Whether the rejection of the petitioner's appeal by the Appellate Authority on the sole ground of "Non receipt of certified copies" without providing an opportunity of hearing is illegal and arbitrary, as argued by the petitioner? The petitioner contended that the appeal was filed within the prescribed limitation period and that the rejection was without notice or hearing.