GOVERDHANDHAM ESTATE PRIVATE LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) Heard.

(2.) This petition is directed against order dtd. 29/9/2023 to the extent of observations made in the enclosures to the said order that even after accepting the explanation/reply furnished by the petitioner, same does not affect the validity of the show cause notice and the legal liability of the person to discharge tax liability under the show cause notice remains ineffective. The petitioner has also prayed for quashing of show cause notice 21/9/2023.

(3.) The facts necessary for decision of the controversy involved in this petition are that the petitioner, who carries on the business of operating a hotel, is registered under the Goods and Service Tax Act, having GSTIN No.08AACCG4611J1ZQ. He submitted his monthly returns in the prescribed form No.GSTR 3B for the financial year 2017-18. The respondent No.2, however, undertook scrutiny of the returns and thereafter, issued a notice on 1/9/2023 in prescribed form No.GST ASMT-10 intimating certain discrepancies, drawing proceedings under Sec. 61 of the RGST/CGST Act, 2017 for the financial year 2017-18. The aforesaid notice dtd. 1/9/2023 stated that the petitioner had availed input tax credit which was not available to him as per Sec. 17(5) of the RGST Act, 2017. In the notice, it was further detailed out that the ITC on payment made to M/s Kone Elevators India Pvt. Ltd. for purchase of lift and payment made for purchase of Air Conditioners were under block credit as per Sec. 17(5) of the RGST Act, 2017 and therefore, the same were not available to be availed. On such consideration, it was stated that the petitioner was liable to reverse the tax amounting to Rs.18,44,884.00 (SGST amounting to Rs.9,22,442.00 and CGST amounting to Rs.9,22,442.00), along with interest under Sec. 50 of the RGST Act. The petitioner was called upon to furnish explanation on or before 15/9/2023.