The Kohima Bench of Gauhati High Court on Thursday issued a temporary stay order on a GST notice amounting to at least Rs. 17 crore (conservative estimate) issued to ECI Engineering and Construction Company Limited office in Dimapur.
“After hearing the learned Counsel for the petitioner on the prayer for interim, this Court is satisfied that a prima facie has been made out to stay the operation of the order dated 23.08.2023. Accordingly, the Order-in-Original No. 08/Addl.Commr/GST/Dimapur/2023-24 dated 23.08.2023 passed by the respondent no. 3 (Additional Commissioner of Central Goods and Services Tax, Dimapur Commissionerate) shall remain suspended till the next returnable date”, stated an order issued by Justice Kakheto Sema.
In the order issued to ECI on 23.08.2023, the Additional Commissioner of Central GST Dimapur Commissionerate had confirmed the demand of Rs. 15,61,35,722/ being short paid of tax for the period July 2017 to Mar 2019; confirmed the demand of interest at the appropriate rate on Rs. 15,61,35,722; imposed penalty amount to Rs. 1,56,13,572; confirmed the demand of interest amounting to Rs. 2,24,24,460 “for delayed payment of tax for July 2017 to March 2018″; confirmed the demand of interest amounting to Rs. 73,65,069 for delayed payment of cash portion of tax amount for the month of September 2018”; and imposed late fee of Rs. 100 per day for failure to file annual return of 2017-18 and 2018-19 separately for each annual return till the date of filing of such return subject to a maximum of an amount calculated at a quarter per cent of their turnover in the State of Nagaland.
The Counsel for ECI submitted that the order had been passed against the provisions of Central Goods and Services Tax Act, 2017 as well as the State Goods and Services Tax, without authority of law and in violation of the principles of natural justice and with erroneous interpretation of legal position.
“It is submitted that such levy of tax results into double taxation on the same taxable event of supply of goods and services,” it said.
In his order, Justice Sema directed: “issue notice to the respondents, returnable within 4 weeks. The learned Counsel for the petitioner shall take steps for service of notice upon the respondents by registered post with AD within a period of 2 days from today”.
Source: Nagaland Pagale
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