JHARKHAND HIGH COURT ISSUES ORDER ON ROYAL INFRACONSTRU V/S COMMISSIONER OF STATE TAX AND ORS.

RANCHI, India, Sept. 5 -- Jharkhand High Court issued the following order on Aug. 5:

1. The present writ petition has been filed for quashing the order dated 28th September, 2024 passed by the State-Tax Additional Commissioner (Appeal), Santhal Pargana Division, Dumka in Appeal No.AD200923000780M (Annexure-6 to the writ petition), whereby the said appeal filed by the petitioner against the order dated 21st June, 2023 passed by the respondent no.4-State-Tax Officer, Jharkhand Goods and Services Tax, Dumka Circle, Dumka has been rejected. Further prayer has been made for quashing the Summary of order dated 21st June, 2023 passed by the respondent no.4 in Reference No.ZD200623001909O, whereby Demand and Recovery Certificate (DRC-01) issued against the petitioner has been confirmed by rejecting its' reply as well as directing to issue DRC-07 for recovery of the alleged due amount against it.

2. Learned counsel for the petitioner submits that the petitioner having GSTIN-20AABCR1827J1ZQ is engaged in the business of works contract service. It filed GST return for the assessment year 2017-18 and claimed appropriate Input Tax Credit (ITC) as mentioned in the GSTR-3B. The Deputy Commissioner, State Tax, Jharkhand Goods and Services Tax, Dumka Circle, Dumka (the respondent no. 2) after scrutiny of the return filed by the petitioner, issued a notice dated 28th September, 2022 (Annexure-1 to the writ petition) to it in Form GST ASMT-10 intimating discrepancies in the filed return alleging that there was difference in amount of ITC mentioned in GSTR-3B and online pop up GSTR-2A.

3. The petitioner filed its reply on 16th November, 2022 in Form GST ASMT-11 (Annexure-2 to the writ petition) relating to GST return filed by it for the assessment period i.e., July, 2017 to March, 2018 explaining all the queries raised in the said notice, however, the respondent no.2 issued a notice dated 26th December, 2022 to the petitioner in Form GST DRC-01A intimating the tax liability ascertained as being payable by it under Sections 73(5)/74(5) and interest under Section 50 of the Jharkhand Goods and Services Tax Act, 2017.

4. The petitioner replied the said notice on 24th January, 2023, however, without considering its' reply and providing any opportunity of hearing, the respondent no.4 passed a Summary of order as contained in Reference No.ZD200623001909O dated 21st June, 2023 in Form GST DRC-07 whereby imposition of tax and interest upon the petitioner to the tune of Rs.1,19,58,944.78/- was held justified and recoverable.

5. Being aggrieved with the said order, the petitioner preferred an Appeal No.AD200923000780M before the Court of StateTax Additional Commissioner (Appeal), Santhal Pargana Division, Dumka, however, the same was rejected vide order dated 28th September, 2024 confirming the order dated 21st June, 2023 passed by the respondent no.4.

*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=bzPoyUlszYLCUcCpirIpqMOpa4V0v0qW3%2FCTM38%2Ftnohac1MUpG314pDc1YTQdbW&caseno=WPC/3037/2025&cCode=1&cino=JHHC010435702024&state_code=7&appFlag=)

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