Show Cause Notice under section 73
It has come to my notice that tax due has not been paid or short paid or refund has been released erroneously or input tax credit has been wrongly availed or utilized by you or the amount paid by you through the above referred application for intimation of voluntary payment for the reasons and other details mentioned in annexure for the aforesaid tax period
Therefore, you are directed to furnish a reply along with supporting documents as evidence in support of your claim by the date mentioned in table below.
You may appear before the undersigned for a personnel hearing either in person or through an authorized representative to represent your case on the date, time, and venue if mentioned in table below.
Please note that besides tax, you are also liable to pay interest and penalty in accordance with the provisions of the Act.
If you make payment of tax stated above along with up-to-date interest within 30 days of the issue of this notice with an applicable penalty, then the proceeding may be deemed to have been concluded.
Details of personal hearing etc.
| Sr. No. | Description | Particulars |
| 1 | Section under which show cause notice/ statement is issued | 73 |
| 2 | Date by which reply has to be submitted | 26/07/2023 |
| 3 | Date of personal hearing | 26/07/2023 |
| 4 | Time of personal hearing | 11:00 |
| 5 | Venue where personal hearing will be held | Address. |
Notice Demand Details-
(Amount in Rs.)
| Sr. No. | Tax Rate (%) | Turnover | Tax Period | Act | POS (Place of Supply) | Tax | Interest | Penalty | Fee | Others | Total | |
| From | To | |||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |
| 1 | 0 | 0.00 | APR 2019 | MAR 2020 | CGST | NA | 3,77,664.00 | 3,42,919.00 | 37,766.00 | 0.00 | 0.00 | 7,58,349.00 |
| 2 | 0 | 0.00 | APR 2019 | MAR 2020 | SGST | NA | 3,77,664.00 | 3,42,919.00 | 37,766.00 | 0.00 | 0.00 | 7,58,349.00 |
| Total | 7,55,328.00 | 6,85,838.00 | 75,532.00 | 0.00 | 0.00 | 15,16,698.00 |
Reply
Sub: Not in a position to pay tax Taxpayer Party,
GSTIN: _________________
Sub: In-eligible ITC claimed from RC is cancelled suppliers
Reference No: _____________ Year: 2019-2020
Dear Sir,
This is to acknowledge the receipt of the Assessment show cause notice for the captioned financial year passed by your good self u/s 73(1), of the GST Act on 13/07/2023.
We would like to inform you that we had made a purchase from them we had paid the amount and the party has shown in GSTR 1 Return also.
Latter above party’s GST number had been cancelled because of an unaware reason. Now dealer has went for the high court to appeal for the cancellation of GST no.
Hence, we would like to inform you that since the dealer has made an appeal to high court to get justify his matter.
Sir, raising the above liability will cause hard difficulty to us, at present, we are not in a position to pay the above liability, as we have already paid taxes to the dealer namely M/s. Service Providing Party.
Your Kind are requested to look in to matter and do needful so that we can have batter solution of the assessment.
Kindly acknowledge the receipts.
Thanking You.
FORM GST DRC – 01
Show cause Notice under Section 73 (1) of the Maharashtra Goods & Services Tax Act, 2017 (MGST Act, 2017)
[Rule 99 and 142 of the Maharashtra Goods & Services Tax Rules, 2017]
Reference No. ____________________________________________, Mumbai Date: 13/07/2023 To,
Name :- TAX PAYER GSTIN :- Tax Payer GSTIN
ADDRESS :- Register Address of Business
Tax Period- 01.04.2019 to 31.03.2020, F.Y. 2019-20, Act- MGST/CGST/IGST Act, 2017.
Section / sub-section under which SCN is being issued – Sub Section 1 of Section 73 of MGST Act 2017. Reference:
- Proceedings of Scrutiny of returns initiated u/s 61 of the GST Laws by issuance of Notice in FORM- GST-ASMT 10 vide Reference No. ______________ dated 30/12/2022
- Compliance made by taxpayer i.e. reply to notice issued under section 61 intimating discrepancies in the return in form GST ASMT 11 dated 28/01/2023, 22/03/2023 & 31/03/2023.
- Intimation of tax ascertained as being payable under section 73(5) /74 (5) r/w Rule 142 in form DRC (01A) issued by this office vide Reference No. ____________________ dated 30/06/2023
- Compliance made by taxpayer i.e. reply to the communication for payment before issue of the show cause notice in form GST DRC 01A –Part B dated 05/07/2023
(A) Brief facts of the case-
M/s. TAX PAYER is a registered taxable person under the provisions of MGST Acts 2017 vide GSTIN Tax Payer GSTIN. The Place of business of the taxpayer is – __________________________________. The GSTIN- Tax Payer GSTIN is Active wef 01/07/2017.
Whereas, during the proceedings of Scrutiny of Returns are initiated in your case, for the F.Y. 2019- 20, discrepancies found are communicated to you in form GST-ASMT-10 as per above reference no 1 by Address, Maharashtra. Accordingly, as per reference no. 2, you have replied on online portal in Form ASMT-11 dated 28/01/2023, 22/03/2023 & 31/03/2023. After that, this case is transferred to Another Ward,
While going through the submission and reply made by you it is noticed that submission and reply submitted by you in form ASMT-11 dated 28/01/2023, 22/03/2023 & 31/03/2023 is not proper & acceptable. The taxpayer has not submitted any document or proof in support of his ITC claim from M/s. Goods and Service Providing Party having GST No. ______________________. Hence, the case is recommended for adjudication under section 73 of MGST Act, 2017.
Intimation in FORM GST DRC 01A as referred at Ref. No.3 were also issued. Accordingly, as per reference no 4, you have replied on online portal in form GST DRC 01A –Part B dated 05/07/2023, in which you have submitted that, Taxpayer has received inward supply from M/s. Goods and Service Providing Party having GST No. ______________________ & taxpayer has made payment on such inward supply to M/s. Goods and Service Providing Party. M/s. Goods and Service Providing Party shown his corresponding outward supply in GSTR 1 also. GSTIN of M/s. Goods and Service Providing Party has been cancelled & Now M/s. Goods and Service Providing Party has filled appeal in high court against RC cancellation. Hence, in a letter submitted by the chartered accountant., it is requested to keep above assessment in abeyance.
The submission and reply submitted by the taxpayer in form GST DRC 01A –Part B dated 05/07/2023 is not proper & acceptable. Till date, taxpayer has not submitted any document or proof in support of his ITC claim from M/s. Goods and Service Providing Party having GST No. ______________________.
Hence, the show cause notice in FORM GST DRC– 01 is being issued.
(B) Grounds and quantification are given below:
Summary of discrepancies along with tax & applicable interest and penalty is as under,
| Para No. | Description of Parameter | Tax | Interest | Penalty | Total |
| 74 | In-eligible ITC claimed from RC is cancelled suppliers | 755328 | 685838 | 75533 | 1516699 |
| TOTAL | 755328 | 685838 | 75533 | 1516699 | |
(C) Details of Discrepancies found:
| Para No. | Objection in brief | Tax | Interest | Penalty | Total | |
| 74 | In-eligible ITC claimed from RC is cancelled suppliers | IGST | 0 | 0 | 0 | 0 |
| CGST | 377664 | 342919 | 37766 | 758349 | ||
| SGST | 377664 | 342919 | 37766 | 758349 | ||
| Cess | 0 | 0 | 0 | 0 | ||
| Total | 755328 | 685838 | 75533 | 1516699 |
Issue in brief:
Earlier PARA 74 was communicated through ASMT 10 is reproduced below.
Your GSTIN is appearing in the GSTR-1 of the following supplier, who have only filed GSTR1 for this period but his registration certificate found cancelled for this period. Hence, you may not be eligible
to avail the ITC on the invoices shown by this supplier as per the provisions of section 16 (2) (C) of the GST Act-2017.
Details of such suppliers is given below table.
| GSTIN/TIN | Tax Payer GSTIN |
| REGN_NAME | TAX PAYER |
| FIN_YEAR | 2019-20 |
| PARA6_ITC_RC_CANCELLED | 755328 |
| GSTIN_NGTP_RCC_NF | ______________________ |
| REG_NAME_NGTP_RCC_NF | GOODS AND SERVICE PROVIDING PARTY |
| TRADE_NAME_NGTP_RCC_NF | GOODS AND SERVICE PROVIDING PARTY |
| TAXABLE_VALUE | 2697600 |
| IGST | 0 |
| CGST | 377664 |
| SGST | 377664 |
| CESS | 0 |
| TOTAL_TAX | 755328 |
| SUPPLIER_CANCELLATION_DATE | 27/02/2019 |
| FLAG | RCC |
Contravention of the Law and Provisions: Contravened the provisions of Section 16, 73 of MGST/CGST Act 2017.
(A) Tax and other dues :
| Act | Tax | Interest | Penalty | Total |
| IGST | 0 | 0 | 0 | 0 |
| CGST | 377664 | 342919 | 37766 | 758349 |
| SGST | 377664 | 342919 | 37766 | 758349 |
| Cess | 0 | 0 | 0 | 0 |
| Total | 755328 | 685838 | 75533 | 1516699 |
In view of above, M/s. TAX PAYER, having GSTN – Tax Payer GSTIN is hereby required to show cause to within 30 days from the receipt of this notice as to why,-
- Why total tax amount at Rs. 755328/- should not be demanded and recover from you under section 73 of the MGST/CGST Act, 2017.
- Why interest amount shall not be imposed thereon under Section 50 demanded and recover under Section 73 of the MGST/CGST Act, 2017.
- Why penalty amount should not be imposed you upon under Section 73 and section 122 of the MGST/CGST Act, 2017.
You are hereby directed to attend this office at aforesaid office Address at 11.00 am on or before 13/08/2023.
You are also directed to file or cause to be file representation in FORM GST DRC 06 along with the evidence you rely on in support of your say on common portal.
You may accept the show-cause and make payment of tax, Interest and penalty and submit intimation of such payment in FORM GST DRC 03 within 30 days from service of the notice.
If no cause is shown against the action proposed to be taken against you within the stipulated period as shown above, or if you fail to appear before the this authority when the case is posted for hearing, the case will be decided ex-parte on the basis of evidence available on the record.
