Case Law Details
Aditya Medisales Ltd. Vs State of Jharkhand (Jharkhand High Court)
The Hon’ble Jharkhand High Court in the case of Aditya Medisales Ltd. v. State of Jharkhand [W.P. (T) NO. 4338 OF 2022 dated October 9, 2023] held that the initiation of proceedings is bad in law, in as much as, in this case, only a summary of show cause notice vide Form DRC – 01 was served and not the proper show cause notice. Thus, the writ application stands allowed and therefore the recovery notice is set aside.
Facts:
Aditya Medisales Ltd. (“the Petitioner”) primarily deals in medicine and medicinal products through its depot in the State of Jharkhand. The Petitioner claimed a Transitional credit under Section 140 of the Jharkhand Goods and Services Tax, 2017 (“the JGST Act”). The Revenue Department (“the Respondent”) issued the summary of Show Cause Notices dated September 14, 2018, in Form GST DRC-01 for demand recovery of the Transitional Credit amount claimed by the Petitioner. On January 16, 2019, a summary of the order in Form DRC-07 (“the Impugned Order”) was received by the Petitioner. On being aggrieved by the Impugned Order, the Petitioner filed an appeal before the Joint Commissioner of State Tax (Appeal), Ranchi (“the Appellate Authority”) under Section of the JGST Act.
The Appellate Authority after hearing the Petitioner’s counsel and Departmental Officials, modified the Impugned Order dated January 16, 2019, and said that is self-explanatory and legally justifiable. Further, the Appellate Authority held that the transition of Input Tax Credit (“ITC”) was illegal and raised a demand with Interest and Penalty in Form GST APL-04 dated August 27, 2019 (“the Appellate Order”)
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