Mohd. Naseem Khan Vs State of Madhya Pradesh and Others (Madhya Pradesh High Court)
The petitioner challenged the order dated 30.11.2022 passed by the Assistant Commissioner of State Tax under Section 74 of the Central Goods and Services Tax Act, 2017 for the financial year 2019–20, as well as the appellate order dated 04.02.2025 by which the Joint Commissioner dismissed the appeal.
The petitioner was operating a business through a proprietorship firm and had obtained GST registration. A notice in Form ASMT-10 under Section 61 was issued on 02.01.2020 alleging mismatch between GSTR-1 and GSTR-3B returns and requiring payment of Rs.1,33,68,792/-. The petitioner did not file any reply, claiming unawareness of the notice.
Subsequently, a notice under Section 74 in Form DRC-01 dated 12.02.2021 demanded tax of Rs.46,23,586/- along with interest of Rs.12,02,400/- and penalty of Rs.11,55,896/-. The petitioner again did not respond, stating that the notice was uploaded in the “additional notice” tab on the GST portal. Thereafter, an ex parte order dated 30.11.2022 was passed confirming the demand under the CGST/MPGST Act.
The petitioner filed an appeal before the Commissioner without depositing the mandatory pre-deposit amount. The appellate authority dismissed the appeal as time-barred on 04.02.2025. Before the High Court, the petitioner argued that the demand violated Section 75(7) because the tax, interest, and penalty imposed exceeded the amount specified in the show-cause notice. The petitioner also stated that he became aware of the demand only when he attempted to sell land and was prevented from executing the sale deed due to pending GST dues. The petitioner had surrendered the GST registration on 12.04.2021.
