2022 Supreme(Jhk) 1287

IN THE HIGH COURT OF JHARKHAND AT RANCHI
APARESH KUMAR SINGH, DEEPAK ROSHAN, JJ.
M/s Vinayak Metal and Chemicals – Appellant
Versus
The State of Jharkhand – Respondent
W.P.(T) No.463 of 2021, W.P.(T) No.466 of 2021, W.P.(T) No.476 of 2021, W.P.(T) No.477 of 2021, W.P.(T) No. 3022 of 2020
Decided on : 14-11-2022

The main legal point established in the judgment is the non-compliance of statutory provisions under the Jharkhand Goods and Services Tax Act, 2017 (JGST), denial of principle of natural justice, and the grant of liberty to the petitioners to revise their GST TRAN-1 form for claiming short claimed input tax credit within the extended period granted by the Hon’ble Apex Court in FILCO Trade Centre Pvt. Ltd. (supra).

Headnote:

GST DRC-01 - Challenge to Summary Notices and Orders - JGST Act, 2017, Rule 142 - Summary notices in Form DRC-01, summary orders in Form DRC-07, adjudication orders, and consequential orders challenged. The court quashed and set aside the show cause notices, summary orders, adjudication orders, and all consequential orders. The petitioners were granted the liberty to revise their GST TRAN-1 form for claiming short claimed input tax credit and to file revised TRAN-1 or TRAN-II within the extended period granted by the Hon’ble Apex Court in FILCO Trade Centre Pvt. Ltd. (supra). The respondents were directed to proceed in accordance with law after proper scrutiny of the revised TRAN-1, if any filed by the individual petitioner.

Fact of the Case:

The petitioners challenged summary notices in terms of GST DRC-01, summary orders in Form DRC-07, adjudication orders, and all consequential orders on the ground of non-compliance of statutory provisions under Jharkhand Goods and Services Tax Act, 2017 (JGST). The court found that no proper show-cause notices were issued to the petitioners, and personal hearings were not granted. The court quashed and set aside the impugned notices/orders and granted the petitioners the liberty to revise their GST TRAN-1 form for claiming short claimed input tax credit.

Finding of the Court:

The court found that the petitioners were denied the principle of natural justice and that the impugned notices/orders were not in compliance with the provisions of the JGST Act. The court also noted the directions given by the Hon’ble Apex Court in FILCO Trade Centre Pvt. Ltd. (supra) and granted the petitioners the liberty to file revised TRAN-1 or TRAN-II within the extended period granted by the Hon’ble Apex Court.

Issues: Non-compliance of statutory provisions under JGST Act, denial of principle of natural justice, and the liberty to revise GST TRAN-1 form for claiming short claimed input tax credit.

Ratio Decidendi: The court held that the impugned notices/orders were not in compliance with the provisions of the JGST Act, and the petitioners were denied the principle of natural justice. The court also relied on the directions given by the Hon’ble Apex Court in FILCO Trade Centre Pvt. Ltd. (supra) and granted the petitioners the liberty to file revised TRAN-1 or TRAN-II within the extended period granted by the Hon’ble Apex Court.

Final Decision: All the writ applications were allowed, and the show cause notices in terms of GST DRC-01, summary orders in Form DRC-07, adjudication orders, and all consequential orders were quashed and set aside. The petitioners were granted the liberty to revise their GST TRAN-1 form for claiming short claimed input tax credit and to file revised TRAN-1 or TRAN-II within the extended period granted by the Hon’ble Apex Court in FILCO Trade Centre Pvt. Ltd. (supra). The respondents were directed to proceed in accordance with law after proper scrutiny of the revised TRAN-1, if any filed by the individual petitioner.