M/S Anjani Plastics And Moulders vs. The State Of Hp And Others
Held
The Court held that the tax liability pertaining to March 2020 and April 2020 had been discharged in the return filed on 13.06.2020 and duly verified by the respondent-authority. Consequently, the impugned show cause notice dated 10.07.2024, the order dated 22.08.2024, and the recovery communication dated 13.08.2025 were quashed and set aside. The matter was remanded back to the concerned authority for reconsideration, specifically in terms of Section 73 of the CGST/SGST Acts, 2017, taking into account the factual matrix communicated in the instructions. The Court directed that the needful be done on or before 30.11.2025, and any amount found payable by the petitioner should be paid. The direction issued to the Bank Manager was also quashed. No issue was expressly left undecided.
Facts
The petitioner, M/s Anjani Plastics and Moulders, inadvertently failed to deposit Integrated Tax of Rs.1,97,478/-, Central Tax of Rs.6,58,879/-, and State Tax of Rs.6,58,879/-, totaling Rs.4,76,379/-, for the period of March 2020 due to a ministerial mistake. The petitioner claims this amount was deposited in the subsequent quarter, June 2020. However, the respondent-authority issued a show cause notice (DRC-01) on 10.07.2024 and an order (DRC-07) on 22.08.2024, demanding a total of Rs.41,21,127/-, including tax, interest, and penalty. Subsequently, recovery proceedings were initiated, including a notice dated 13.08.2025 to HDFC Bank under Section 79 of the CGST/SGST Acts, 2017, to recover Rs.41,21,129/-.
Key Issues
1. Whether the impugned order dated 22.08.2024, passed under Section 74(9) of the CGST/SGST Acts, 2017, and consequential recovery proceedings are liable to be quashed and set aside? (Question of law and fact, concerning Section 74 and Section 79 of the CGST/SGST Acts, 2017). Petitioner's arguments: The petitioner contended that the non-deposit was due to a bona fide clerical mistake, which was rectified by depositing the shortfall in the next quarter. Therefore, the invocation of Section 74, which deals with cases involving fraud or willful misstatement, was inappropriate. They argued that the matter should have been considered under Section 73, which pertains to other cases of tax demand, and that any interest or penalty should only be for the delay of one quarter. Revenue's arguments: The respondent-authority initiated recovery proceedings as the petitioner had not filed any appeal against the orders. However, subsequent instructions revealed that the tax liabilities for March 2020 and April 2020 were discharged in the GSTR-3B return filed on 13.06.2020 and verified on the GST portal.
Sections Cited
Section 74, Section 79, Section 73
AI-generated summary — verify with the full judgment below
2025:HHC:35455 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
CWP No.16233 of 2025 Date of decision: 16th October,2025
M/s Anjani Plastics and Moulders.
...Petitioner. Versus State of Himachal Pradesh and Others.
…Respondents.
Corum
Hon’ble Mr. Justice Vivek Singh Thakur, Judge.
Hon’ble Mr. Justice Romesh Verma, Judge.
Whether approved for reporting?1
For the Petitioner : Mr. Mohit Thakur, Advocate, vice Mr. Rajat Awasthy, Advocate.
For the Respondents: Mr. Sushant Kaprate, Additional Advocate General.
Vivek Singh Thakur, Judge (Oral)
Present petition has been filed seeking following substantive relief(s):- “I. Issue a writ of certiorari thereby quashing and setting aside the impugned order dated 22.08.2024 passed by Respondents under Section 74(9) of the CGST/SGST Acts, 2017 (Annexure P-5); or/and II. Issue a writ of certiorari to quash and set aside the consequential recovery proceedings, including the communication/letter dated 13.08.2025 issued to HDFC
1Whether the reporters of the local papers may be allowed to see the Judgment? Yes
2 2025:HHC:35455
Bank, Baddi Br
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