April 2024
M	T	W	T	F	S	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30

Draft appeal to appellate authority

Apr 01, 2020 by Advocate Dinesh Verma in GST Litigation

Table of Contents

STATEMENT OF FACTS

1) M/s —-, (hereinafter referred to as the Appellant) is filing the present appeal against the impugned Order-in-Original in Form GST DRC-07 issued vide Ref No.— ——- dated ——– the Learned Excise & Taxation Officer cum Proper Officer of State Tax, Copy of the impugned Order-in-Original is enclosed as Annexure-1.

2) Vide the above impugned Order-in-Original in Form GST DRC-07 issued vide Ref No.——–dated ——– the Learned Excise & Taxation Officer cum Proper Officer of State Tax, has observed that:-

(1) In response to the aforesaid notice, served through an online portal and also served to the taxpayer manually neither the taxpayer nor his representative appeared before the undersigned and failed to submit any reply/document in response to the show-cause notice. Hence the undersigned has no other option but to decide the case exapte on merits. Therefore, keeping in view facts of the case and relevant record placed on file, the proposed tax, interest and penalty is hereby confirmed and the taxpayer is directed to pay the following amount within thirty days of the receipt of this order, failing which action will be taken as per law;-

3) M/s ———- (hereinafter also referred as ‘the appellant’), is registered as Normal tax Payer under section 22 of the CGST Act 2017 having GSTIN ———- and are engaged in the activities of manufacturing of Blocks falling under HSN —-. Principal input i.e. Cement required for doing taxable activities is procured by the appellant from registered Dealers (GST Normal Tax Payers) including M/s ———- under cover of Tax invoice as prescribed under rule 46 of the CGST Act 2017. The appellant is also filing regularly and properly the Tax returns i.e. GSTR-1 & GSTR3B as prescribed under section 39 of the CGST Act 2017. The appellant is also maintaining a necessary record/account of final products as well as the inputs.

SHOW CAUSE NOTICE AND ALLEGATIONS IMPOSED THEREIN

4) The appellant has been served a Show Cause Notice issued Reference Number —– ———— dated ——- under section 74(1) of Haryana Goods and Service Tax At 2017 vides Form DRC-01 (under section 142(I) of the CGST Act 2017 for proposing the undermentioned demands:

5) While raising show cause notice, the following objections were raised;-

a) Whereas on ——-, an inspection/search was conducted by the officers of the department at business premises of M/s———-, in compliance of the order of Additional Commissioner of State Tax (Enf-II) Panchkula issued vide order dt. ———–. Officers of the department seized various documents from the business premises of the firm under section 67 of HGST 2017. Statement of Sh.——— was also reported before the officers of the department.

b) On ———-, present Sh.———, Prop. Of the firm, sale/purchase bill books seized from the business premises of the firm were examined. The difference of Rs. ——— was noticed in the sale as per bill book seized when compared with the sale shown by the dealer in his GST online returns in the month of ——– and ——. Therefore, it is clear that as per the bill book seized, excess sale of Rs. ———– is shown as compared to returns involving tax amount of Rs. ———.

c) The inspection team has seized tax invoices of M/s ——— GSTIN ———- amounting to Rs. ———- involving tax amount of Rs. ——– from business premises of M/s——- —-. This purchase has also been reflected in GST returns 2A of the dealer. The reports regarding physical verifications of M/s ———— have been received from the concerned jurisdictional Taxation inspectors under rule 25 of SGST/CGST Act 2017. The registered person M/s ———– was not found functional at the registered place of business mentioned in their registration certificate therefore panchnama was prepared to this effect by the concerned taxation inspector ——– on dt. ———— after proper inquiry. Also, the proprietors of the firms were not traceable. Therefore, considering all the aforesaid facts, an FIR No.—– dt. —— was lodged at Police Station, —————-, —— by the concerned proper officer.

d) From the above facts, it is evident that registered person M/s ———— were nonexistent and got themselves registered under SGST/CGST Act 2017 on the basis of fake and forged documents and deceived the Government Authorities fraudulently by uploading forged documents and used Government GST online portal for passing input tax credit to other registered people by issuing invoices and generating Eway bills with intention of evading payment of tax. In this regard, GSTR-1 returns filed by the above nonexistent registered persons for the period in question were examined and it was noticed that these registered persons have shown to be made huge supplies to M/s ———-.

e) The statement of owners of the vehicle numbers was recorded wherein they disclosed that their vehicle has not been used for movement goods mentioned in the aforesaid invoices. In other words it establishes that the tax invoices were issued only to pass wrongful input tax credit without movement of goods.

f) On the basis of detailed inquiry in this regard, it is proved that the registered person in question has not conducted active business with the non-existent registered person named above and rather have indulged in claiming wrong input tax credit on the strength of fake invoices. Therefore, from the above discussion and inquiry, it is clear that;-

a) The difference of Rs——- was noticed in the sale as per bill book seized when compared with the sale shown by you in GST online returns.

b) You have shown purchases from M/s —————— which is a non-existent dubious registered person as per taxation inspector report and has uploaded fake/forged documents on GST common portal.

c) From the statements of vehicle owners mentioned in the tax invoices of M/s———- -, it is clear that only invoices have been issued without movement of goods.

6) However, neither appellant has been granted sufficient time for filing of the reply to the show-cause notice nor any opportunity of personal hearing was granted to the appellant before adjudication of the matter violating the Principles of Natural Justice. Consequently, Order has been passed without any submissions made by the appellant towards allegations made in the show cause notice.

7) Being aggrieved by the above mentioned Order-in-Original, the appellant herein is filing the present appeal, inter alia, on the following grounds which are independent of and without prejudice to each other: