In a petition challenging the show-cause notice issued by the GST department on ground of discrepancies in the GSTR 3B, the Orissa High Court has held that the GST Act provides adequate safeguards,entertainment of the writ petition at the stage of notice would be premature. Doing so would frustrate the tax administration and interdict adjudication process.
The proper officer has issued Show Cause Notices for determination of tax liability under Section 73 of the GST Act on the basis of discrepancy observed between the figures furnished by the petitioner-taxpayer, Late Sri MunaPaniin the returns furnished in Form GSTR-3B under Rule 61 of the GST Rules and the data made available in the web portal-WORKS AND ACCOUNTS MANAGEMENT INFORMATION SYSTEM (WAMIS).
The petitioner urged to quash the Demand-cum-Show Cause Notices as ultra vires, illegal, unconstitutional and violative of the Fundamental Rights of the petitioner.
A bench of Justice Jaswant Singh and Justice Murahari Sri Raman observed that “Considering the fact that the petitioner has ample opportunity to agitate issues before the Assessing Officer, this Court holds that entertainment of the writ petition at the stage of notice would be premature. Doing so would frustrate the tax administration and interdict adjudication process. This Court is alive to the fact that the statute under consideration, viz., the GST Act and rules framed thereunder, provides sufficient safeguard for the assesseepetitioner, more so, when against the final orders of adjudication, appeal lies.”
Concluding the order, the High Court held that “Thus, the proper officer concerned is at liberty to verify the veracity of the claim(s) made in the returns furnished by the petitioner and take appropriate steps in accordance with law after affording reasonable opportunity of hearing to the petitioner.”
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