M/S Horizon Packs PVT. LTD. vs. Union Of INDIA
Facts
The petitioner, a company paying tax under State GST, challenged an order dated 06.11.2023 passed under Section 73(9) of the Uttarakhand Goods and Services Tax Act, 2017. This order demanded a deposit of ₹91,95,708/- towards tax, interest, and penalty. The petitioner's primary contention was that the amount demanded in the impugned order significantly exceeded the amount specified in the show cause notice (Form GST DRC-01), which was ₹27,06,340/-. The petitioner argued that the demand raised was unsustainable due to this discrepancy.
Held
The Court held that the impugned order dated 06.11.2023 was not in accordance with the provisions of Section 73(7) of the Uttarakhand Goods and Services Tax Act, 2017. This section clearly mandates that the demand raised in the final order cannot exceed the amount specified in the show cause notice. The Court noted the concession made by the State's counsel, who admitted that the demand in the impugned order was significantly higher than that mentioned in the show cause notice. Consequently, the Court found the order to be unsustainable. The writ petition was allowed, and the impugned order was quashed. However, the Court permitted the Proper Officer to initiate proceedings de novo, with an expectation that the final order would be passed within four months after duly following the statutory mandate.
Key Issues
1. Whether the demand raised in the impugned order dated 06.11.2023, demanding ₹91,95,708/-, is sustainable when the show cause notice (Form GST DRC-01) specified an amount of ₹27,06,340/-, in light of Section 73(7) of the Uttarakhand Goods and Services Tax Act, 2017? Petitioner's Argument: The petitioner argued that the impugned order is unsustainable as it violates Section 73(7) of the Uttarakhand Goods and Services Tax Act, 2017, which stipulates that the amount of tax, interest, and penalty demanded in the order shall not exceed the amount specified in the notice, nor shall the demand be confirmed on grounds other than those specified in the notice. Revenue's Argument: The learned Brief Holder for the State conceded that the impugned order was not in compliance with Section 73(7) of the Act, as the demand raised was substantially more than the amount indicated in the show cause notice.
Sections Cited
Section 73(7), Section 73(9)
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SL. No Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGES’S ORDERS
WPMS No. 525 of 2024 Hon’ble Manoj Kumar Tiwari, J.
(1) Mr. Rohit Arora, learned counsel for the petitioner.
(2) Mr. Mohit Maulekhi, learned Brief Holder for the State of Uttarakhand.
(3) Petitioner is a Company paying tax under State GST. Petitioner is challenging the order dated 06.11.2023 passed under Section 73(9) of Uttarakhand Goods and Services Tax Act, 2017, whereby he has been asked to deposit ₹91,95,708/-, as tax, interest & penalty.
(4) Petitioner has challenged the said order only on the ground that the amount mentioned in the show cause notice issued in Form GST DRC-01 is much less, therefore, more amount cannot be ordered to be paid by the petitioner. Attention of this Court is drawn to show cause notice issued in Form GST DRC-01 in which the amount mentioned is ₹27,06,340/- only.
(5) Learned counsel for the petitioner submits that the impugned order dated 06.11.2023 is unsustainable in view of provision contained in Sub-Section (7) of Section 75 of Uttarakhand Goods and
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