Order Dated – 26 May 2022

Facts: 

• The Petitioner, Kishore Kumar Arora, submits that even according to revenue, their taxable turnover in the relevant period amounted to Rs.15,28,468/-. It was also submitted that based on an incorrect advice rendered by the petitioner’s Chartered Accountant, Rs.18,69,400/- were deposited with the respondents, although, given the taxable turnover generated by the petitioner, he was not eligible to tax.
• Revenue without jurisdiction, not only confiscated the subject goods i.e., tobacco products, but also imposed penalty amounting to Rs.18,69,307/- (rounded off to Rs.18,69,400/-).

Issue:

• Whether the GST officer has jurisdiction to issue the impugned show cause notice and/or pass the impugned order when the taxable turnover is below the threshold limit?

Order:

• The Court observed that the petitioner had identified the source from whom he purchased the goods - the taxable turnover of the petitioner was Rs.15 lakhs (approx), which, as noticed, is below the threshold limit of Rs.20,00,000/- fixed for tobacco products. 
• The Court held that the respondents had no jurisdiction to issue the impugned show cause notice and/or pass the impugned orders. Accordingly, directed to refund Rs.18,69,400/- deposited by the petitioner, along with interest @6% (simple) per annum.