RAM CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) Learned counsel for the petitioner Mr. Sumeet Gadodia assisted by Mr. Satyam Parmar submits that notice under Section 79 of the CGST Act, 2017 has been issued by respondent No. 2 for alleged recovery of government dues amounting to Rs. 4,28,86,464/- on 24.07.2020 (Annexure-8) upon petitioner's banker United Bank of India without any adjudication process under Section 73 and 74 of the Act. The alleged dues relate to Central Goods and Services Tax, pertaining to the period of July, 2017 to March, 2019 but has been computed only on the basis of one GSTR-1 statement without giving benefit of input tax credit admissible to the petitioner as claimed through GSTR-3B statement.

(2.) Time limit for completion or compliances has been extended further up to 30.11.2020 vide CBIC Circular dated 01.09.2020 at page 259. Petitioner on his own bonafide has deposited Rs. 15 lacs towards aforesaid tax dues. However, due to Covid-19 situation and on account of the garnishee notice, his business is at a stand still.

(3.) It is submitted that respondents were allowed short time to be ready with instructions by order dated 12.01.2021 on the interim prayer, but no categorical instructions have come forth in this regard or any affidavit has been filed. Petitioner is ready to pay the tax liability of Rs. 1.14 Crores in reasonable instalments pending any adjudication on the denial of his claim of ITC of 3.04 Crores. However, unilaterally such a claim of ITC cannot be denied. Petitioner further undertakes to deposit Rs. 15 lacs within ten days. He submits that the impugned notice may be stayed till filing of the counter affidavit so that the petitioner may not continue to suffer.