Modine Thermal Systems Private Limited Vs State of Uttarakhand and Others (Uttarakhand High Court)
The petitioner challenged an assessment order arising from proceedings initiated under the GST law. The dispute began when the respondent authority issued a show-cause notice in Form GST ASMT-10 dated 18.06.2024, seeking details and explanations regarding differences between the value of outward supplies declared in GSTR-1 and the value reflected in E-Way Bills for the financial year 2020-21. The petitioner submitted a reply on 17.07.2024.
Subsequently, on 28.11.2024, the authority issued a show-cause notice in Form DRC-01 proposing a demand of ₹71,57,938 along with interest on account of the alleged difference in the value of outward supplies declared in GSTR-1 and the value of E-Way Bills. The notice fixed a personal hearing on 20.12.2024, while the last date for submission of the reply was specified as 28.12.2024. The petitioner sought adjournment of the hearing to a date after submission of its reply, stating that it was in the process of collating information relating to the relevant period.
The High Court observed that fixing a personal hearing before the expiry of the time granted for filing a reply was akin to “putting the cart before the horse.” The Court held that submissions during a personal hearing would necessarily be based on the reply filed by the assessee. Therefore, insisting on a personal hearing before the submission of the reply was contrary to the scheme of the GST Act.
