Order date – 14 November 2022

 Facts –

• The Petitioners, M/s Vinayak Metal and Chemicals, M/s. ShayamUdyog, M/s. MaaAmbicaBhawani Steel, and M/s. Balajee Enterprises are business concern, engaged in trading of Iron & Steel, Coal and Salt.
• For the period from April, 2017 to June, 2017 the petitioner furnished its Returns under FORM JVAT 200 and declared an amount of Rs.84,16,555.73/- as excess Input Tax Credit to be carried forward to the next period (GST Regime).
• The petitioner submitted its TRAN-1 for claiming Input Tax Credit to be carried over to GST Regime. Although the excess Input available to the petitioner was Rs.84,16,555.73/, but owing to an inadvertent mistake, the petitioner claimed transactional ITC for an amount of Rs.69,16,555.73/-. In addition, the petitioner claimed an amount of Rs.15,41,522/- as input towards Goods held in stock.
• A Summary Show Cause Notice in terms of GST DRC-01 read with Rule 142 (1) was purportedly issued, informing about initiation of proceedings for utilization of excess ITC (the said notice was neither electronically uploaded nor physically made over to the petitioner). Without any knowledge or information to the petitioner, an amount of Rs.16,36,000/- was blocked from the Electronic Credit Ledger of the petitioner. On 04.05.2018 Summary Order under GST DRC-07, exercising power under Rule 142 (5) was issued without making available the copy of the order to the petitioner till date.

Issue –

• Whether the impugned notices/orders and action of the respondent authorities on the ground of non-compliance of statutory provision as mentioned in Jharkhand Goods and Services Tax Act, 2017 are in order?

Order –

• The Hon’ble High Court relied on the decision in the case of M/s Unity Infraproject Ltd. Vrs. State of Jharkhand & Ors. [W.P.(T) No.985 of 2022] wherein it was held that in the absence of proper show cause notice for furnishing reply petitioner was prevented from taking his defence and submitting a proper reply to the show cause notice. The adjudication order has been passed straightaway without following due procedure prescribed under Section 73 read with section 75(4) & (5) of the JGST Act. The aforesaid infirmities have vitiated the adjudication proceeding.
• Thus, it appears that admittedly, the petitioners in the respective applications have been denied of principle of natural justice. In view of the aforesaid discussion, the show cause notices in terms of GST DRC-01 read with Rule 142 of the JGST Rules, summary of orders in Form DRC-07 and respective adjudication orders and all consequential orders, are hereby, quashed and set aside.
• Also relied the decision of the Hon’ble Apex Court in the case of Union of India & Anr. Vrs. FILCO Trade Centre Pvt. Ltd. &Anr. It has been directed to the Goods and Service Tax network for opening the common portal for 2 months i.e. with effect from 01.09.2022 to 31.10.2022, for filing concerned forms for availing transitional credit, as also, to revise the already filed forms.
• In view of the above judgment, the petitioners in the present cases shall also be entitled to revise its GST TRAN-1 form for claiming the short claimed input tax credit, as also, to revise its form if any excess input tax credit was claimed by the petitioners as per the department.
• Hence it was held that the respondents are required to abide by the said direction and proceed in accordance with law after proper scrutiny of the revised TRAN-1, if any filed by the individual petitioner. The appeal is allowed.