Ambey Mining Pvt Ltd Vs Commissioner of State Tax (Jharkhand High Court)
This article discusses a crucial ruling by the Jharkhand High Court in the case of Ambey Mining Pvt Ltd Vs. Commissioner of State Tax. The court found that Revenue cannot reissue show cause notices for a period already covered by an accepted First Appellate Order.
Analysis: The case involves a writ application filed by Ambey Mining Pvt Ltd seeking relief from two show cause notices issued by different authorities for the same period. The petitioner argued that the notices were attempting to reopen an already settled matter. The court examined the legality and propriety of the First Appellate Order dated 16-01-2021, which was accepted by the Revenue and had attained finality.
The court noted that the First Appellate Authority does not have the power to remand the matter back to the assessing authority. Therefore, initiating fresh proceedings by the lower authorities after the appellate order is contrary to the law and principles of res judicata. It also referred to precedents supporting the view that issuing second show cause notices on the same cause of action is impermissible.
Additionally, the court addressed the demand of interest for March 2020 and found that the petitioner was entitled to the benefit of a COVID-19 relaxation measure reducing the interest rate. The court directed the petitioner to pay the reduced amount of interest.
Conclusion: The Jharkhand High Court’s ruling in the case of Ambey Mining Pvt Ltd Vs. Commissioner of State Tax reinforces the principle of finality of orders and the prohibition against re-agitating settled matters. It clarifies that Revenue cannot reissue show cause notices for a period already covered by an accepted First Appellate Order. The judgment sets a precedent for similar cases and upholds the principle of res judicata in tax matters.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
1. Heard learned counsel for the parties.
2. The instant writ application has been preferred for following reliefs:-
(i) For issuance of an appropriate writ(s), order(s), or direction(s) for quashing and setting aside the impugned Show Cause Notice dated 09.2022 bearing Ref. No. 1131 dated 16.09.2022 along with Summary of Show Cause Notice in Form GST-DRC-01 dated 16.09.2022 which are at Annexure-1 hereto, issued by the respondent No.3 for the period April 2019 to March 2020 in purported exercise of powers conferred under section 73, Section 75 (120, Section 50 of the Jharkhand Goods and Service Tax Act, 2017 read with Rule 142 (1) of the Jharkhand Goods and Service Tax Act, 2017 read with Rule 142 (1) of the Jharkhand Goods and Services Tax Rules, 2017;
(ii) For issuance of an appropriate writ(s), order(s), or direction(s) for quashing and setting aside the impugned Show Cause Notice dated 10.2022 bearing Ref. No. 1510 along with Summary of Show Cause Notice in Form GST-DRC-01 dated 20.10.2022 which are at Annexure-2 hereto, issued by the respondent no.2 for the period April 2019 to March 2020 in purported exercise of powers conferred under section 73 of the Jharkhand Goods and Services Tax Act, 2017 read with Rule 142 (1) (a) of the Jharkhand Goods and Services Tax Rules, 2017;
3. The brief fact of the case is that the petitioner is registered with the State GST Authorities under the Jharkhand Goods and Services Tax Act, 2017/Central Goods & Services Tax Act, 2017 vide GSTIN No. 20AAFCA2578R1ZD. The case of the petitioner is that two show cause notices were issued and both impugned show cause notices are for the same period for the self-same cause of action (except March, 2020) issued by two different authorities i.e., the Deputy Commissioner of State Tax, West Circle, Ranchi, the Respondent No.2 and the Assistant Commissioner of State Tax, West Circle Ranchi, the Respondent No.3. Both the impugned show cause notices (except to the extent of March, 2020) attempted to start a fresh adjudication proceeding in respect of the self- same cause of action which has already attained finality by First Appellate Order dated 16-0 1- 2021.
As per the petitioner, their monthly GSTR-3B returns for the following months under Section 39 of the JGST Act/ Rule 61 of the JGST Rules were filed with some delay as tabulated below.
Delay in filing GSTR-3B returns
