Garg Sons Estate Promoters Pvt. Ltd. vs. Commissioner of State Taxes & Excise and others (Himachal Pradesh High Court)
In a notable decision, the Himachal Pradesh High Court has intervened in the case of Garg Sons Estate Promoters Pvt. Ltd. vs. Commissioner of State Taxes & Excise and others, putting a temporary halt to the enforcement of a GST tax liability order. This move comes as a significant relief for Garg Sons Estate Promoters Pvt. Ltd., herein referred to as the petitioner, amidst allegations of procedural duplication concerning GST liabilities.
Detailed Analysis
The case unfolds with the issuance of summons under Section 70 of the HPGST/CGST Act, 2017, by respondent No. 2, covering the period from 01.01.2021 to 30.06.2021, regarding supplies received from M/S R.J. Trading. Despite the petitioner’s response, a subsequent show cause notice under Section 74 (1) of the Act was served, culminating in an order imposing tax, interest, and penalty on the petitioner dated 20.05.2023.
The crux of the petitioner’s argument lies in the duplication of proceedings. The petitioner draws attention to a similar summons issued for the period from 01.07.2017 to 30.06.2021, which resulted in the payment of GST liability amounting to Rs. 2,52,49,764/-, thereby closing the proceedings with the Central authorities as per Annexure P-12 dated 21.12.2023.
The petitioner contends that the impugned order dated 20.05.2023 subjects them to double jeopardy for the same liability, which not only lacks procedural fairness but also inflicts undue hardship and potential irreparable financial harm.
