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BHARGAV D. KARIA, NIRAL R. MEHTA
Anjani Cotton Industries Through Rajdeep Nagjibhai Saravda – Appellant
Versus
Principal Commissioner Of Central Goods And Services Tax – Respondent
JUDGMENT :
(Bhargav D. Karia, J.)
1. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 30.8.2023 issued by the respondent No.1 in Form GST DRC- 01 under Sections 74(1), 122(2) and 125 of the Central Goods and Service Tax Act, 2017 (for short ‘the GST Act’) read with Rule 142(1) of the Central Goods and Service Tax Rules, 2017 (for short ‘the GST Rules’) for Financial Year 2017-18 and 2018-19 and the order in original dated 28.12.2023 passed by the respondent No.1 confirming the demand of unpaid tax on Reverse Charge Mechanism (for short ‘RCM’) on purchase of cotton from agriculturist amounting to Rs.3,73,95,300/- along with the penalty of equal amount under Section 122(2) of the GST Act.
2. Brief facts of the case are as under :
2.1 The petitioner is a partnership firm engaged into the trading and supplying of the cotton bales on wholesale basis. It is the case of the petitioner that 80% of the total turn-over is earmarked for the purpose of export.
2.2 The petitioner purchases raw cotton from the registered dealers upon upfront payment of 5% GST on the invoice price.
2.3 According to the petitioner, pursuant to the Notificat
Transactional value under Section 15 of the GST Act must be the decisive element for tax liability, and arbitrary assumptions regarding pricing or profit margins are impermissible.
Show-cause notices under Sections 73 and 74 of the WBGST/CGST Act can coexist for the same tax period if based on distinct grounds, and petitioners must pursue available appellate remedies before see....
Recovery actions must adhere to mandatory procedures, ensuring due process and proper notice to the party liable, not conflated with unrelated entities.
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