Case Law Details
Vihaan Networks Limited Vs The State of Bihar (Patna High Court)
The present writ application has been filed seeking quashing of a notice bearing Process No. 336 dated 25.01.2023, issued by the Deputy Commissioner of State Tax, Special Circle, Patna, asking the petitioner to deposit outstanding amount of Rs. 97,24,149/- against the State Goods and Services Tax (SGST) by 27.01.2023.
The petitioner is a company incorporated under the provisions of the Companies Act, 1956, and is registered under Bihar Goods and Services Tax Rules, 2017 (BGST Rules), vide GSTIN 10AACCR2460C1Z6. As pleaded in the writ application, a notice was issued to the petitioner on 02.02.2018 by the Deputy Commissioner (In-charge Patna), Special Circle, under Rule 121 of the BGST Rules, calling upon the petitioner to furnish returns, records, books of accounts and other evidence in support of the claim for the carry forward of credit amounting to Rs. 77,38,250/-, filed in Form TRAN-1 under Rule 117 of the BGST Rules 2017. The petitioner is said to have responded to the said notice. Subsequently, a show-cause notice was issued to the petitioner under Section 73 of the Bihar Goods and Services Tax Act (BGST Act), bearing Process No. 21 dated 14.09.2018 in Form-DRC-01 proposing a demand of Rs. 77,38,250/-.
It is the petitioner’s case that the show-cause notice was not served upon the petitioner, rather it obtained a copy of the said show-cause notice subsequently on 18.12.2018. It is the petitioner’s further case that without affording any opportunity of hearing, the demand, so proposed vide notice dated 14.09.2018, was confirmed along with interest and penalty, totalling a sum of Rs. 1,02,53,184/-.
The petitioner, thereafter, preferred an appeal under Section 107(1) of the BGST Act 2017. In order to maintain his appeal against the adjudication order, he had deposited 10% of the disputed tax amount on 02.01.2019. The Appellate Authority, i.e., the Additional Commissioner, State Tax (Appeal), Central Division, Patna, vide an order dated 19.11.2020, disposed of the petitioner’s appeal with certain modification by revising the demand of tax from a sum of Rs. 77,38,250/- to 75,76,852/-.
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