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New Show Cause Notice (SCN) Cannot be issued without considering pervious reply.

13 Aug, 2024
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Introduction

Radiant Cash Management Services Ltd. (the petitioner) challenged a GST notice issued by the State of Uttar Pradesh. The case revolves around allegations of discrepancies in GST returns and the subsequent issuance of a show-cause notice under Section 73 of the U.P. Goods and Services Tax Act, 2017.

 

Key Points of the Case

  • Nature of Business: The petitioner is engaged in cash logistics, providing services to banks and other financial institutions.
  • GST Registration: The petitioner is registered under the Central Goods and Services Tax Act but not under the U.P. GST Act.
  • Alleged Discrepancies: The State issued a notice alleging discrepancies between the petitioner's GSTR-2A and GSTR-3B returns.
  • Incorrect Notice: The petitioner claimed that the notice was erroneously addressed to another company, M/s Paridhee Creation, and contained irrelevant data.
  • Petitioner's Response: The petitioner submitted a detailed reply to the notice, denying any connection with M/s Paridhee Creation and addressing the alleged discrepancies in its own returns.
  • Show-Cause Notice: Despite the petitioner's response, the State issued a show-cause notice under Section 73 proposing a demand and penalty.

 

Court's Decision

The court found merit in the petitioner's argument that the notice under Section 73 was issued without proper consideration of its earlier reply. The court directed the following:

  • The petitioner to submit a detailed reply to the notice under Section 73, focusing solely on its own returns and disregarding the information related to M/s Paridhee Creation.
  • The State to consider the petitioner's reply carefully and conduct a personal hearing through video conferencing, if necessary.
  • The State to take an informed decision within four weeks of receiving the petitioner's reply.

 

GST Case Law Radiant Cash Management Services Ltd. Versus Deputy Commissioner

Citation-2024 TAXONATION 1757 (ALLAHABAD)

 

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