M/S. Arihant Enterprises vs. Commissioner, State GST

Facts

The petitioner, M/s. Arihant Enterprises, filed a writ petition before the High Court of Chhattisgarh challenging an order (OIA dated 05.02.2024) and another order (APL 04 dated 14.03.2024). The petitioner sought to quash these proceedings, alleging a violation of natural justice due to the non-issuance of a show cause notice. They also prayed for a direction to the respondents to issue detailed show cause notices with appropriate allegations through the GSTN Portal, ensuring a fair right to defense before any recovery of tax. The petitioner's counsel submitted that the impugned order is appealable under Section 112 of the Chhattisgarh Goods and Service Tax Act, 2017, and that a similar issue was addressed by the Court in WPT No.40/2023, allowing the petitioner therein to file an appeal before the Goods and Service Tax Appellate Tribunal upon depositing 20% of the disputed tax amount. The petitioner expressed their intention to deposit this amount within a week.

Held

The Court noted that the impugned order is appealable under Section 112 of the Chhattisgarh Goods and Service Tax Act, 2017. Citing a previous order in WPT No.40/2023, the Court permitted the petitioner to file an appeal before the Goods and Service Tax Appellate Tribunal. The Court directed the petitioner to deposit 20% of the amount claimed in the order dated 05.02.2024. Following this deposit, the petitioner is to file an appeal before the appellate Tribunal within 30 days from the date of the order. The Court stipulated that as soon as the President or State President of the Goods and Service Tax Appellate Tribunal enters office, the appeal should be decided on its merits. The statutory stay provided under Section 112(9) of the Act of 2017 will remain in effect until the appeal is decided. If the appeal is not filed within the stipulated period, the State is at liberty to proceed with the recovery of remaining taxes, interest, and penalty. The issue of violation of natural justice due to non-issuance of a show cause notice was implicitly addressed by allowing the appeal process, which would provide the petitioner an opportunity to present their defense.

Key Issues

1. Whether the impugned orders (OIA dated 05.02.2024 and APL 04 dated 14.03.2024) are appealable under Section 112 of the Chhattisgarh Goods and Service Tax Act, 2017, and if so, what is the procedure for filing such an appeal. 2. Whether the proceedings leading to the impugned orders violated the principles of natural justice due to the alleged non-issuance of a show cause notice to the petitioner. Petitioner's Arguments: - The impugned order is appealable under Section 112 of the Act of 2017. - The Court has previously allowed similar matters (WPT No.40/2023) by permitting petitioners to file appeals before the Goods and Service Tax Appellate Tribunal. - Filing an appeal under Section 112 requires depositing 20% of the tax amount, which the petitioner is prepared to do within one week. - The petition should be disposed of in line with the Court's order in WPT No.40/2023. Respondents' Arguments: - The learned State Counsel did not oppose the petitioner's proposition.