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Case Summary: Sri Jahar Sur Chowdhury vs. The
Union of India & 5 Ors.
Case No.: WP (C) 507 OF 2022
Court Name: High Court of Tripura, Agartala
Date of Order: 04.04.2023
Case Summary: The case revolves around a challenge to the
legality and validity of an order passed by the Additional Commissioner
concerning the imposition of a penalty under the CGST Act, 2017. The
petitioner, Jahar Sur Chowdhury, challenged the imposition of penalties related
to his Input Tax Credit (ITC) claims for July 2019. The petitioner argued that
the penalties were imposed in violation of the principles of natural justice
and the CGST Act, 2017.
Facts of the Case:
·
The petitioner filed a
return for July 2019, claiming an ITC of Rs. 63,93,317.00 in GSTR-3B. However,
the ITC available in GSTR-2A was only Rs. 13,33,407.00.
·
The discrepancy arose
due to accumulated ITC from previous periods.
·
The petitioner
reconciled the discrepancy upon noticing it and reversed the excess ITC claim
before any notice was issued by the GST Department.
·
The petitioner argued
that the reversal was done without malintent and the excess ITC was adjusted in
the January 2020 GST liability.
Submissions By
Submission:
·
The petitioner
contended that the order imposing penalties under Section 74 of the CGST Act was
unjustified. The penalties were imposed without considering the provisions of
Section 74(2) & (10) of the CGST Act, 2017.
Respondent's
Submission:
·
The respondents argued
that the petitioner wrongly availed ITC in July 2019 without proper tax invoices.
They maintained that the petitioner did not reverse the excess ITC on his own
before departmental communication, leading to an investigation under Section 74
of the CGST Act.
Findings and Decision:
·
The court found
contradictions between the adjudicating authority's order and the appellate
authority's order. The court concluded that Section 74 of the CGST Act did not
apply in this case as no valid case was made in the show cause notice or the
impugned orders.
Conclusion: The court set aside and quashed the orders dated 06.01.2021,
passed by the adjudicating authority, and 30.03.2022, passed by the appellate
authority. The matter was remanded to the concerned authorities to decide
afresh in accordance with the law. The writ petition was allowed and disposed
of.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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