S. Kushalchand International Pvt. Ltd. & Anr. Vs Additional Director (Gujarat High Court)
Gujarat High Court held that the show cause notice issued for evasion of GST by DGGI shall be adjudicated by competent authority. Thus, there is no inherent lack of jurisdiction of competent authority. Hence, writ not entertained.
Facts- Petitioner company is carrying on business in the State of Maharashtra and State of Uttar Pradesh in India. The petitioners are served with three show cause notices for levy of penalty up on the petitioners for being beneficiaries for alleged evasion of tax by the three concerns namely M/s. Flora Naturale, M/s. Odochem Industries and M/s. Odosynth Inc. to whom the petitioner company has supplied the goods which was used as raw material for production of perfumery compounds and involved in clandestinely supplying perfumery compounds without payment of GST to M/s. Trimurti Fragrance Private Limited, Kanpur and M/s. Trimurti Fragrances and Flavours Private Limited, Kanpur for the unaccounted production and clandestine supplies/clearances of pan masala and scented tobacco/jarda.
A search was also carried out on 28/29.03.2022 at the additional places of business of the petitioners situated at Bhiwandi in the State of Maharashtra and it was found that there was shortage of goods purchased by the petitioners. During search, it was found that there was a shortage of 40 items of goods valued at Rs.2,78,41,680/- involving GST of Rs. 50,11,502/- and LRs/transport documents issued by M/s. Ganpati Road Carriers Private Limited were found showing payment of freight in cash, however, no such expenses were debited in the books of account of the petitioners and no expense was shown to be incurred by the petitioners for payment of transport charges in respect of supplies made to aforesaid buyers of the petitioner.
