BLA PROJECTS PVT. LTD. Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Heard learned counsel for the petitioner Mr. N.K. Pasari and Mr. Sachin Kumar, learned A.A.G-II appearing for the Respondent State.

(2.) Writ petition has been preferred for the following relief (s):

(3.) Petitioner, a registered GST Dealer involved in the business of Works Contracts and mining related activities, is registered with the State Taxes Department, Government of Jharkhand under Jharkhand Goods and Services Tax Act, 2017 ('JGST' for short). It has utilized the amount of Input Tax Credit (ITC) against output tax liability on the amount of taxes paid on purchase, as per GSTR-3B. However, his return were scrutinized for the Financial Year 2018-19 and discrepancy of Rs.6.17 lakhs was found on account of mismatch/ difference between GSTR-2A and GSTR-3B which he was asked to explain by notice issued in Form GST ASMT-10 dtd. 18/10/2019 (Annexure-2). Petitioner replied on 4/11/2019 enclosing Summary of Difference between GSTR-3B and GSTR-2A claiming that it is only Rs.44,303.00 and not Rs.6.17 lakhs, as claimed by the Department. However, no response was received from the Department for more than a year. But the petitioner was surprised to receive a Summary of Show Cause Notice in Form GST DRC-01 dtd. 20/10/2020 alleging that he has claimed excess ITC for the period April 2018 to March 2019 and was asked to reply as to why tax, interest and penalty to the tune of Rs.14,36,896.00 be not imposed upon him. A show notice under sec. 73 of JGST Act, 2017 was also served upon the petitioner on the same day 20/10/2020 (Annexure-4) directing him to furnish a reply with supporting documents. Petitioner furnished its reply on 29/10/2020 requesting the Respondents to re-calculate the difference in GSTR-2A and GSTR-3B and agreed to pay any excess ITC claimed by him, if it was in excess of the taxes paid. According to the petitioner, discrepancy mentioned in GST ASMT-10 differs from the demand details in the Summary of Show Cause Notice (Annexure-4) and Show Cause Notice under sec. 73 (Annexure-5). However, according to the petitioner, without taking notice of the reply, a summary order has been issued in Form GST DRC-07 on 14/12/2020 imposing tax, interest and penalty to the tune of Rs.14,36,896.00 on account of excess ITC availed. Petitioner has further averred that its Electronic Credit Ledger has been blocked to the extent of Rs.12,30,238.00 on 5/3/2020 and again an amount of Rs.4,21,698.00 was blocked. Such ITC remains blocked for more than a year in teeth of Rule 86A(3) of JGST Rules, 2017.