Ramhari And Brothers Vs Joint Commissioner (State Tax) (Rajasthan High Court)
The Rajasthan High Court considered a writ petition challenging an order dated 22.02.2025 passed by the Deputy Commissioner, State Tax, Circle-Karauli, Bharatpur, confirming GST demand on account of alleged excess/incorrect claim of input tax credit and non-payment of applicable tax liability under the RGST/CGST Act, 2017.
The petitioner, a sole proprietorship engaged in the business of trading oil and registered under the Rajasthan Goods and Services Tax Act, 2017, stated that it became aware of the proceedings only after receiving SMS alerts from its bank informing it that ₹21,56,177 had been debited pursuant to recovery proceedings initiated by the GST Department. According to the petitioner, no proceedings were visible under the “Notices and Orders” tab on the GST portal, and the impugned show cause notice and adjudication order were discovered only after checking the “Additional Notices and Orders” tab on the advice of its GST consultant. The petitioner asserted that no email or SMS intimation regarding the show cause notice or adjudication order had been received. The adjudication order confirmed a demand comprising GST of ₹21,02,878, interest of ₹2,92,590, and penalty of ₹2,20,000. The show cause notice alleged non-payment of GST on the difference between turnover reflected in the audited financial statements and GSTR-9C for FY 2020-21 and proposed reversal of input tax credit under Section 17(5) of the CGST Act, 2017.
