Monolith Resorts Private Limited Vs Commissioner State Tax (Uttarakhand High Court)
The appeal before the Uttarakhand High Court involved Monolith Resorts Private Limited challenging an order issued by the Commissioner State Tax. The Learned Counsel for the petitioner relied on a previous order of the same Bench, dated 21.04.2025, which disposed of Writ Petition (M/B) No. 123 of 2025, M/s Modine Thermal Systems Private Limited vs. State of Uttarakhand and others.
The facts of the prior case (Modine Thermal Systems Private Limited) were outlined as follows:
- The petitioner was issued a show cause notice (SCN) dated 18.06.2024 in Form GST ASMT–10 by the second respondent.
- The notice sought details and an explanation regarding the difference in the value of outward supplies declared in GSTR 1 and the value of E-way Bills raised in the financial year 2020-2021.
- The petitioner submitted a reply to the SCN on 17.07.2024.
- Subsequently, on 28.11.2024, the second respondent issued Form DRC – 01 (SCN) proposing to confirm a demand of ₹71,57,938/- with interest for the noted difference in values.
- This notice scheduled a personal hearing on 20.12.2024 and set the last date for submission of the reply as 28.12.2024.
- The petitioner requested an adjournment of the personal hearing date to a time after they had submitted their reply, citing the need to collate information pertaining to 2021.
The High Court, in the Modine Thermal Systems case, criticized the approach of the Revenue Authority, stating that fixing the personal hearing date before the last date for submission of the reply is “akin to putting the cart before the horse.” The court reasoned that submissions made during the personal hearing should necessarily be based on the reply already filed. It deemed the Authority’s insistence on holding the hearing prior to the reply submission to be “incorrect and contrary to the scheme of the Act.”
