Muzamil N Vs Deputy State Tax Officer -I (Madras High Court)
Madras High Court held that due to non-compliance against notice issued in DRC-01A, the petitioner is directed to deposit 25% of the disputed tax and petitioner will be granted opportunity of being heard on payment of the amount.
Facts- The petitioner was engaged in the business of Scrab. The petitioner was a registered dealer under Goods and Services Act, 2017. During the assessment year 2018-2019, the petitioner had filed details of outward supplies in Form GSTR-1 u/s. 37 and returns in Form GSTR-3B u/s. 39 of the said Act. During inspection conducted u/s. 67 of the GST Act, in the business place of the petitioner, it was found that the petitioner had fraudulently availed ineligible input tax credit in as much as the credit of input tax has been availed on the strength of tax invoices or debit notes or any other documents prescribed under Rule 36 issued by the supplier, who had been found to be not conducting any business from any place for which registration has been obtained.
Subsequently, a notice was issued in DRC-01A to the petitioner on 16.12.2022 through GST Portal, followed by a Show Cause Notice on 07.03.2023. However, the petitioner had neither filed its reply nor paid the tax amount. Hence, the impugned order came to be passed.
