JHARKHAND HIGH COURT ISSUES ORDER ON SANJEET KUMAR BHAGAT V/S COMMISSIONER OF STATE TAX, STATE OF JHARKHAND AND ANR.

RANCHI, India, Nov. 5 -- Jharkhand High Court issued the following order on Oct. 6:

1. Heard.

2. The instant writ petition has been filed for grant of following reliefs :

"(A) For quashing and setting aside the Show Cause Notice being Ref. No. ZD2008200013175 dated 27.08.2020 (Annexure-2), issued by the Respondent No. 2 under Section 73 of the Jharkhand Goods and Service Tax Act, 2017, for the period April, 2018 to March, 2019, as the same is vague and does not disclose the offence or contravention and the same is mere mechanical reproduction of the provisions of Section 73 of the said Act without striking of the irrelevant portions, further as the same without jurisdiction in view of the fact that no penalty @ 100% of the tax amount is imposable u/s 73 of the said Act; (B) For quashing and setting the Summary of Show Cause Notice in FORM GST DRC-01, being Ref. No. ZD2008200013175 dated 27.08.2020 (Annexure-3) issued by the Respondent No. 2 in exercise of power under Rule 100(2) and 142(1)(a) of the Jharkhand Goods and Services Tax Rules, 2017, as the same is unsustainable, without jurisdiction and has been issued without serving the proper show cause notice under Section 73 of the said Act. (C) For quashing and setting aside the Summary of Order in FORM GST DRC-07 contained in Ref. No. ZD201120000210Z dated 04.11.2020 (Annexure-4) issued by the Respondent No. 2 in exercise of power under Rule 100(1), 100(2), 100(3) and 142(5) of the Jharkhand Goods and Services Tax Rules, 2017, as the same is unsustainable, without jurisdiction and has been issued without serving the proper show cause notice under Section 73 of the said Act. (D) For quashing and setting aside the Order dated 13.09.2021, as mentioned in Form GST APL-02 (Annexure5) passed by the Appellate Authority i.e. Joint Commissioner, JGST, Godda, Dumka, whereby and whereunder the appeal filed by the Petitioner against the aforesaid Summary of the Order dated 04.11.2020 (Annexure-4) has been rejected, by mentioning reason therein as "Non receipt of certified copies", which is illegal as the appeal has been rejected without providing any opportunity of hearing, without any notice and even without providing the copy of appeal merely by mentioning reason therein as "Non receipt of certified copies" in the said Form GST APL-02. (E) For a declaration that all the aforesaid actions of the Respondent Department is illegal, arbitrary and mala fide in view of the fact there was no difference in ITC amount in GSTR3B and GSTR2A for the period in question i.e. April, 2018 to March, 2019, and the Petitioner has taken due ITC as per the records maintained by the Petitioner, for the period in question."

3. From perusal of the records, we find that the first appellate authority has rejected the appeal of the petitioner solely on the ground of non-receipt of the certified copies. This view taken by the appellate authority is hyper technical as an opportunity of hearing ought to have been granted to the petitioner. More particularly when the appeal, which according to the petitioner, had been filed within prescribed period of limitation.

4. Be that as it may be.

5. We are of the considered view that a hyper technical view, especially in tax matters cannot be taken given the fact that it entails financial liability.

6. Accordingly, we deem it appropriate to set aside the order passed by the appellate authority.

7. Consequently, the instant writ petition is allowed. 8. The parties are directed to appear before the appellate authority on or before 10th November, 2025, who shall proceed to decide the appeal on merits as expeditiously as possible and preferably by 31st December, 2025.

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