Golden Cargo Movers Vs State of Chhattisgarh (Chhattisgarh High Court)
GST Demand order liable to be quashed if Demand exceeds amount specified in SCN: Chhattisgarh HC
1. The Petitioner was issued a demand order tuning to INR 5 Crores against SCN of INR 1.33 Crores. Also, the Bank account and Immovable assets of the petitioner were attached on later point of time for recovery. The Petitioner challenged the orders issued by the Respondents being violative of provisions of Section 75(7) of CGST Act.
2. The Respondents took a plea that the Petitioner failed to furnish any documents in order to substantiate exemption claimed by the petitioner, accordingly, the tax demanded is payable by the Petitioner.
3. Upon going through the contentions of both the parties and the legal provisions in this regard, the Court took a view that the action of the Respondent is in violation of provisions of Section 75(7) of CGST Act.
4.Accordingly, the Hon’ble Court set aside the Orders passed by the Respondents along with the orders of attachment of Bank Account and Immovable Property. However the Court granted the liberty to the Respondents to proceed afresh in accordance with the provisions of law.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
