Zyvana Integrated Services Pvt. Ltd. Vs Additional Commissioner of GST and Central Excise (Madras High Court)
The petitioner challenged Order-in-Original Nos. 19 to 21/2023-GST-ADC dated 31.05.2023, by which demands raised through three show cause notices were confirmed. The first show cause notice dated 30.06.2022 was issued under Section 74 for differences between Form GSTR-1 and Form GSTR-3B for March 2018 to March 2019. The second notice dated 04.08.2022 was issued under Section 73 for similar differences for April 2019 to March 2021. The third notice dated 12.12.2022 under Section 73 related to alleged wrongful availment of ineligible ITC for July 2017 to March 2018.
The writ petition challenged the impugned order insofar as it confirmed the imposition of 100% penalty under Section 74 in respect of the first show cause notice. The petitioner submitted that the order arose from the alleged failure to pay tax on outward supplies declared in GSTR-1 and the failure to file corresponding monthly returns in GSTR-3B. According to the petitioner, certain outward supplies were not reflected in GSTR-3B as several customers had not made payment against the invoices issued. The petitioner contended that all outward supplies had been correctly declared in GSTR-1 and there was no intention to evade tax.
