Notice to Haryana on Airtel’s plea against recovery proceedings

The Punjab and Haryana excessive courtroom has issued a discover to the Union authorities and Haryana on a plea filed by telecom big Bharti Airtel towards restoration proceedings beneath the CGST Act, asking the corporate to deposit Rs 5.7 crore. A division bench comprising Justice Avneesh Jhingan and Justice Rajesh Bhardwaj of the HC issued the discover after taking cognisance of a petition filed by Bharti Airtel Restricted. In its plea, the corporate has sought instructions to quash the discover dated June 8.

The HC has been knowledgeable that on December 19, 2017, the petitioner filed its Kind GSTR-1, displaying provide of Rs 29,88,00,000 in respect of bill No. 1. The Frequent Portal Identification Quantity (CPIN) challan was generated by the petitioner evidencing credit score of quantity to the account of the federal government and to the digital money ledger maintained by the petitioner.

The excise and taxation officer (ETO)-cum-proper officer/assessing authority Gurugram issued a discover to the corporate informing a few mismatch between Kind GSTR-1 and Kind GSTR-3B for the month of December 2018. On December 22, 2020, the corporate filed a reply explaining the alleged mismatch.

The ETO-cum-proper officer, state tax, Haryana State GST Intelligence Unit, Sector-34, Gurugram, issued summons to the petitioner firm, in search of paperwork for the alleged legal responsibility to pay curiosity on account of late cost of tax for December 2018 and to enchantment earlier than the authority. On June 4, the corporate despatched a mail, requesting the summoning authority for adjournment from private look scheduled on June 4 on account of restrictions imposed in view of Covid-19 pandemic.

The corporate later despatched a letter to the officer involved, explaining the circumstances resulting in mismatch in Kind GSTR-1 and Kind GSTR-3B and the rationale as to why the levy of curiosity just isn’t warranted. Thereafter, discover was issued by the ETO-cum-proper officer, state tax, Haryana State GST Intelligence Unit, Sector-34, Gurugram, initiating restoration proceedings beneath Part 79 of the CGST Act and directing the petitioner firm to deposit Rs 5,77,62,543 inside seven days of the receipt of the mentioned discover.

On June 12, summons have been issued by the GST authorities involved, in search of particulars of paperwork/info within the nature of record of financial institution accounts, record of debtors, particulars of receivables and to look earlier than them on June 15.
Aggrieved from this, the corporate approached the HC in search of instructions to quash the June 8 order on the grounds that the discover has been issued by GST authorities, Gurugram, whereas exceeding their jurisdiction. Additional instructions have additionally been sought to declare that the retrospective modification effected to Rule 61 (5) of the CGST Guidelines and Rule 61 (5) of the HGST Guidelines, 2017 can not unsettle vested rights created in favour of the petitioner firm towards imposition of curiosity as on the date of cost of tax—January 17, 2019. NewsRobin