Prem Motors Pvt. Ltd. Vs Union India India And Others (Madhya Pradesh High Court)
In the case of Prem Motors Pvt. Ltd. vs Union of India & Others, the Madhya Pradesh High Court addressed a dispute concerning discrepancies in GST turnover for the financial year 2017-2018. The petitioner, Prem Motors Pvt. Ltd., reported a mismatch between its annual return (Form GSTR-9) and its reconciliation statement (Form GSTR-9C), resulting in an un-reconciled turnover of ₹80.41 crores. The Additional Commissioner, CGST, issued a notice under Section 74 of the CGST Act, 2017, demanding tax, interest, and penalties totaling ₹40.24 crores. The petitioner contended that the inclusion of GST in the turnover was an error and claimed inadequate opportunity for a personal hearing, arguing that the order violated principles of natural justice under Section 75(4) of the CGST Act.
The High Court dismissed the petition, emphasizing the availability of an alternative appellate remedy under Section 107 of the CGST Act. It noted that the petitioner could appeal the decision but would need to deposit 10% of the disputed amount. The Court stated that discrepancies in financial data and supporting documents should be examined by the appellate authority, not the writ court. The decision also referenced Supreme Court rulings, underscoring that writ petitions under Article 226 are typically not entertained unless there are exceptional circumstances like fundamental rights violations or procedural lapses. Consequently, the Court dismissed the petition but granted liberty to the petitioner to pursue statutory remedies.
