HC Stayed Operation of Demand-cum-Show Cause Notice Issued By Dept. Without Issuing Form GST ASMT-10

Case Details: Pepsico India Holdings (P.) Ltd. v. Union of India - [2023] 157 taxmann.com 428 (Gauhati)

Judiciary and Counsel Details

• • Manish Choudhury, J.
  • Mrs. R. Borah, Adv. for the Petitioner.
  • DY.S.G.I., Adv. for the Respondent.

Facts of the Case

In the present case, the petitioner company was served with a demand-cum-show cause notice under section 73(1) alleging that there was an un-reconciled ITC amount as reflected in GSTR-9C for financial year 2017-18 and petitioner was liable to reverse wrongly availed and utilized ITC along with applicable interest and penalty.

The petitioner filed writ petition against it and contended that mandatory conditions precedent required for invoking provisions of section 73(1) for issuance of impugned demand-cum-show cause notice were absent in instant case since Form GST ASMT-10 was not issued.

High Court Held

The Honorable High Court noted that in instant case, Form GST ASMT-10 was not issued to petitioner. Therefore, prima facie the act of issuance of impugned Demand-cum-Show Cause Notice under Section 73(1) by proper officer was without compliance of mandatory conditions, more particularly, provisions of Section 61 read with Rule 99. Thus, the Court held that the operation of impugned Demand-cum-Show Cause Notice was to be stayed and matter was listed for hearing.