- (1.) Learned counsel for the petitioner Mr. Sumeet Gadodia assisted by Mr. Satyam Parmar submits that notice under Section 79 of the CGST Act, 2017 has been issued by respondent No. 2 for alleged recovery of government dues amounting to Rs. 4,28,86,464/- on 24.07.2020 (Annexure-8) upon petitioner's banker United Bank of India without any adjudication process under Section 73 and 74 of the Act. The alleged dues relate to Central Goods and Services Tax, pertaining to the period of July, 2017 to March, 2019 but has been computed only on the basis of one GSTR-1 statement without giving benefit of input tax credit admissible to the petitioner as claimed through GSTR-3B statement. Petitioner has a credit of ITC to the tune of Rs. 3,04,15,359/-. Petitioner admits tax liability of Rs. 1,14,53,646.91/-. Petitioner's admitted amount has been withheld by one MC Nally Bharat Engineering Company Ltd. to the tune of Rs. 5,48,45,307/- even after successful completion of the work awarded to the petitioner. Therefore, petitioner approached NCLT, Kolkata under Section 9 of the Insolvency and Bankruptcy Code, 2016, which however was dismissed on 04.03.2020. Petitioner's appeal is pending before the NCLAT and has been admitted on 09.10.2020. Petitioner has also made representation vide Annexure-14 to the respondent Deputy Commissioner, South Division, Ranchi, in reply to the garnishee order passed under Section 79 of the Act bringing all these facts into his notice. Without any adjudication, the claim of ITC to the tune of Rs. 3.04 Crores cannot be denied. Learned counsel for the petitioner has also referred to CBIC circular at Annexure-15 dated 03.04.2020 which is to the following effect: "G.S.R...........(E)-In exercise of the powers conferred by section 168A of the Central Goods and Services Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017), in view of the spread of pandemic COVID-19 across many countries of the world including India, the Government , on the recommendations of the Council, hereby notifies, as under,- (i) where, any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended up to 30th day of June, 2020, including for the purposes of- (a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above, or (b) filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above. but, such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below- (a)Chapter V, (b)Sub-section (3) of section 10, section 25, 27, 31, 37,47,50,69,90,122,129; (c) Section 39, except sub-section (3), (4) and (5). (d)Section 68, in so far as e-way bill is concerned; and (e)rules made under the provisions specified at clause (a) to (d) above. (ii) where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020 the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020. 2. This notification shall come into force with effect from the 20th day of March, 2020."
(2.) Time limit for completion or compliances has been extended further up to 30.11.2020 vide CBIC Circular dated 01.09.2020 at page 259. Petitioner on his own bonafide has deposited Rs. 15 lacs towards aforesaid tax dues. However, due to Covid-19 situation and on account of the garnishee notice, his business is at a stand still.
(3.) It is submitted that respondents were allowed short time to be ready with instructions by order dated 12.01.2021 on the interim prayer, but no categorical instructions have come forth in this regard or any affidavit has been filed. Petitioner is ready to pay the tax liability of Rs. 1.14 Crores in reasonable instalments pending any adjudication on the denial of his claim of ITC of 3.04 Crores. However, unilaterally such a claim of ITC cannot be denied. Petitioner further undertakes to deposit Rs. 15 lacs within ten days. He submits that the impugned notice may be stayed till filing of the counter affidavit so that the petitioner may not continue to suffer.;