Shri Radhe Contractor Vs Union of India And Another (Allahabad High Court)
The petition was filed by Radhe Contractor against the Union of India and Another challenging an order dated August 20, 2024, passed by respondent no. 2. This order raised a total demand of Rs. 46,68,188/- against the petitioner for the period of July 2017 to March 2018.
Background of the Dispute
The petitioner was initially issued a show-cause notice (SCN) dated November 26, 2023, under Section 74 of the Goods and Services Tax Act, 2017 (‘the Act’) in form GST DRC-01. This notice called upon the petitioner to show cause why tax, penalty, and interest totaling Rs. 28,01,001/- should not be imposed.
The petitioner claimed that they were unaware of the SCN because it was only uploaded on the portal under the tab ‘Additional Notice and Order’ and was never communicated through any other mode. Consequently, the petitioner did not or could not file a response to the SCN, which ultimately led to the passing of the demand order on August 20, 2024.
Petitioner’s Contention and Statutory Provision
The petitioner argued that the final demand of Rs. 46,68,188/-, which included a penalty of Rs. 14,19,238/- and interest of Rs. 18,40,000/-, was contrary to the SCN and in violation of Section 75(7) of the Act. The SCN had only sought recovery of Rs. 28,01,001/- against tax, interest, and penalty.
