कायालयअधी क

सी.जी.एस.टी. एवंक ीयउ ादशु , रज-IV, भाग - III

56,Silver Hills colony,Dhar
OFFICE OF THE SUPERINTENDENT
C.G.S.T. & CENTRAL EXCISE, RANGE-II,
DIVISION-III
56,Silver Hills colony,Dhar
Email : r5dharpith@gmail.com

GEXCOM/SCN/GST/1537/2023-CGST-RANGE-DHAR-2-DIV-PTH-3-COMMRTE-UJJAIN Dhar, Date:24.08.2023

FORM GST DRC - 01
[See rule 100 (2) & 142(1)(a)]
To
M/s BABA ELECTRONIC AND MACHINARY,
Prop ABHISHEK BHAWSAR,
493,SADAR BAZAR,DAHI, DHAR,Madhya Pradesh
GSTIN: 23BFTPB2497D1ZH
DIN:
Tax Period – F.Y. 2018-19; Act - CGST Act, 2017
Section/sub-section under which SCN is being issued–73 of CGST Act 2017 read &
equivalent provisions of MPGST Act, 2017.
Summary of Show Cause Notice
(a) Brief facts of the case : Annexure-A(enclosed)
(b) Grounds : Annexure-A(enclosed)
(c) Tax and other dues : Rs. 138977.10/- + interest + penalty
(Amount in Rs.)
POS
Tax (Pl
Period ace
Sr. Ta x Turno Interes Penalt Other
Ac t of Ta x Fee Tota l
No. rate ve r Fr t y s
T Su
o
o ppl
m
y)
1 2 3 4 5 6 7 8 9 10 11 12 13
As As
CGST 69488.55/- applicable applicable
0 0 69488.55/-
As As
SGST 69488.55/- applicable applicable
0 0 69488.55/-
IGST
0.00 0.00
As As
Tota l Total 138977.10/- applicable applicable
0 00 138977.10/-

अधी क (रज II)

भाग पीथमपुर -III
Note -
1. Only applicable fields may be filled up.
2. Column nos. 2, 3, 4 and 5 of the above Table i.e. tax rate, turnover and tax period are not
mandatory.
3. Place of Supply (POS) details shall be required only if the demand is created under the IGST
Act.]54 Substituted vide Notf No. 16/2019-CT dt. 29.03.2019 w.e.f 01.04.2019
 कायालयअधी क
सी.जी.एस.टी. एवंक ीयउ ादशु , रज-IV, भाग - III
56,Silver Hills colony,Dhar
OFFICE OF THE SUPERINTENDENT
C.G.S.T. & CENTRAL EXCISE, RANGE-II, DIVISION-III
56,Silver Hills colony,Dhar
Email : r5dharpith@gmail.com

F.No.GEXCOM/SCN/GST/1537/2023-CGST-RANGE-DHAR-2-DIV-PTH-3-COMMRTE-UJJAIN Dhar, Date:23.08.2023

ANNEXURE-A
To
M/s BABA ELECTRONIC AND MACHINARY,
Prop. ABHISHEK BHAWSAR,
493,SADAR BAZAR,DAHI, DHAR,Madhya Pradesh
GSTIN: 23BFTPB2497D1ZH
DIN:

DEMAND CUM NOTICE TO SHOW CAUSE

M/s BABA ELECTRONIC AND MACHINARY, Prop. ABHISHEK BHAWSAR , 493,SADAR

BAZAR,DAHI, DHAR,Madhya Pradesh (hereinafter referred to as “the Noticee”) having
GSTIN: 23BFTPB2497D1ZH is engaged in Retail business of HSN
85091000,84561000,85061000 etc. The registration of the noticee is suspended from
02.02.2023.
2. At the Outset, it is clear that the provisions of CGST Act, 2017 and MP-GST Act,
2017 are in pari-materia and have the same provisions in like matter and differ from each
other only on a few specific provisions. Therefore, unless a specific mention is particularly
made to such dissimilar provisions, a reference to the CGST Act would also mean a
reference to the corresponding similar provisions in the MP-GST Act.
3. On perusal of the GST returns available in the GST portal for the period from Apr-2018
to March 2019, the discrepancies were noticed by the proper officer i.e. the Superintendent,
CGST, and Central Excise, range-II Division-III, Pithampur, which were communicated vide
F.No. CGST&CEX/R-II/01/Ineligible ITC/22-23/1838 dated 11.04.2023to the Noticee. But,
taxpayer neither appear nor submitted any compliance to the same till the date of issuance
of this notice.
Details of discrepancies remaining unsettled are as under:
(i) Ineligible input Tax Credit of Rs. 138977.10/- (Rs. 69488.55/- CGST, Rs. 69488.55/-
SGST,Rs. 0.00/- IGST) availed in GSTR 3B return for the F.Y. 2018-19 is required to be
paid/reversed in terms of Section 16(4) of the CGST Act, 2017.
4. The Noticee has availed/utilized Input Tax Credit in GSTR 3B return for the F.Y.
2018-19 which is ineligible in terms of Section 16(4) of the CGST Act, 2017, details are as
under:

IGS Total
CGST SGST T Cess
GSTR 3B (2017-18) 69488.55 69488.55 0.00 0 138977.10
Total 69488.55 69488.55 0.00 0 138977.10
It is also observed that whole of this Ineligible ITC has been claimed in the GSTR 3B return
filed during April to March.
4 (ii) In the present matter it is observed that the Noticee has not reversed/paid their
Input Tax Credit in GSTR 3B return for the F.Y. 2018-19 which was wrongly
availed/utilized as per Section 16(4) of the CGST Act, 2017, the Noticee has not
reversed/paid the same till the issuance of this notice.
4 (iii) For the F.Y. 2017-18, Section 16(4) of CGST Act stipulates that “A registered person
shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of
goods or services or both after the due date of furnishing of the return under section 39 for the
month of September following the end of financial year to which such invoice or debit note
pertains or furnishing of the relevant annual return, whichever is earlier.” Therefore, the
Noticee is required to reverse/pay the Input Tax Credit amounting to Rs. 138977.10/- (Rs.
69488.55/- CGST, Rs. 69488.55/- SGST, Rs. 0.00/- IGST) availed/utilized during the
F.Y. 2018-19.
5. From the discussions above, it appears that in the self-assessment process under
the CGST/MP-GST Act, 2017 and the Rule made thereunder, the Noticee is responsible and
required to determine the correct tax liability and accordingly pay the same, which they did
not do. Therefore, it appears that Noticee had contravened the provision of Sections 37, 38,
and 39 of the CGST Act 2017, read with Section 59 of the CGST Act, 2017, and also
relevant provisions of law under MP-GST Act and Rules thereunder.
6. From above, it appears that the noticee is liable to pay:
i. GST on account of ineligible Input tax credit availed amounting to Rs. 138977.10/-
(Rs. 69488.55/- CGST, Rs. 69488.55/- SGST, Rs. 0.00/- IGST)[Rupees One lakh
thirty eight thousand nine hundred seventy sevenonly] wrongly availed/utilized by
them in GSTR-3B for the F.Y. 2018-19 under Section 16(4) along with applicable
interest as per section 50 of the CGST Act, 2017 & penalty under section 122 (2)(b)
of the CGST Act, 2017. The noticee not only availed ineligible ITC but also utilized
the same amounting to Rs. 138977.10/-. Hence, they are liable for penal action
also.

7. Now, therefore, the Noticee M/s -BABA ELECTRONIC AND MACHINARY

,493,SADAR BAZAR,DAHI, DHAR,Madhya Pradesh having GSTIN: 23BFTPB2497D1ZH is
hereby called upon to show cause and explain in writing to the Superintendent of CGST
and Central Excise, Range-II, Division – Pithampur-III, 56, Silver Hills Colony, Above ICICI
Bank, Dhar, within 30 days of the receipt of this notice as to why:-
i. GST on account of ineligible Input tax credit availed/utilized amounting to
138977.10/- (Rs. 69488.55/- CGST, Rs. 69488.55/- SGST, Rs. 0.00/-
IGST)[Rupees One lakh thirty eight thousand nine hundred seventy sevenonly]
wrongly availed/utilized by them in GSTR-3B during the F.Y. 2018-19 under Section
16(4) should not be imposed & recovered from them under Section 73 of the CGST
Act, 2017 and MP-SGST Act, 2017. The notice not only availed ineligible ITC but
also utilized the same amounting to Rs. 138977.10/-. Hence they are liable for
penal action also.
ii. Interest on the amount of GST as mentioned in Para 07(i) above, should not imposed
& recovered from them under Section 50 of the CGST, Act 2017 and MP-GST Act,
2017
iii. Penalty for availing and utilizing ineligible ITC of GST as mentioned in Para 07(i)
above, should not be imposed & recovered upon them under Section 122 (2)(b) of the
CGST/MP-GST Act, 2017.
08. The Noticee at the time of showing cause should produce all the evidence, oral or
documentary, upon which they intend to rely in support of their defence.

09. The Noticee should make a specific mention in his written reply as to whether they
would like to be heard in person by the Adjudicating Authority before the case is decided. If
no such mention is made in the reply, it shall be presumed that the Noticee does not desire
any personal hearing.
10. If the Noticee does not show cause against the actions proposed in this notice within
the above stipulated period of 30 days or extended period as the case may be and/or if the
Noticee or his lawyers or authorized representative(s), do not appear before the adjudicating
authority on the date and at the time fixed for personal hearing, the case shall be liable to
be disposed of ex-parte based on evidence brought on records, without any further
reference to them.
11. This Notice is issued without prejudice to any other action that may be taken
against the Noticee or any other person(s)/firm(s) whether mentioned herein or not under
the provisions of CGST Act, 2017, or any other law for the time being in force in the
Republic of India.
12. The following documents/records are relied upon in the case for the purpose of
evidence, which is already available with the Noticee :-
I. Copy of F.No. CGST&CEX/R-II/01/Ineligible ITC/22-23/1838 dated 11.04.2023
II. Copy of GSTR -1, GSTR-3B and GSTR-2A returns filed as available on GST portal.
                 

(Pankaj Solanki)
   SUPERINTENDENT (Range-II)
CGST & Central Excise,
DIVISION-III, Pithampur
Copy to:-
1. The Deputy Commissioner, Central Goods and Services Tax & Central Excise,
Division–III, Pithampur, for information, please.
2. Guard File, Range-II, Division-III, Pithampur (M.P.)
 

(Pankaj Solanki)
SUPERINTENDENT (Range-II)
CGST & Central Excise,DIVISION-III, Pithampur