The power exercised under Section 67 of the CGST Act, 2017 is distinct, separate and independent of the power to be exercised by the competent authority under Section 71. The intent, purpose and scope of both the Sections are distinct, separate and independent and not subject to each other.
Section 71 of the CGST Act, 2017 — Notice --- The petitioner prayed for quashing the letter dated 21.01.2021, by which the petitioner has been requested to reverse all the ITC along with interest and penalty, which has been availed by the petitioner on the basis of the invoices issued by both the non-existent and fictitious firm. The court observed that the power exercised under Section 67 is distinct, separate and independent of the power to be exercised by the competent authority under Section 71. The notice dated 21.01.2021 under Section 71 stood issued to the petitioner, but then, upon subjective satisfaction of having reason to believe, the officer authorized to conduct the search and seizure operations under Section 67, did do per law.
Held that:- The Hon’ble High Court directed the petitioner to fully cooperate and participate in the passing of the order by the competent authority, under Section 67 of the Act. If the petitioner chooses to prefer an appeal, challenging the very same order, it shall be open for them to do so, per law, within a period of four weeks. In such an eventuality, the issue of limitation shall not come in the way of decision of such appeal on merits.
The power exercised under Section 67 of the CGST Act, 2017 is distinct, separate and independent of the power to be exercised by the competent authority under Section 71. The intent, purpose and scope of both the Sections are distinct, separate and independent and not subject to each other.
Section 71 of the CGST Act, 2017 — Notice --- The petitioner prayed for quashing the letter dated 21.01.2021, by which the petitioner has been requested to reverse all the ITC along with interest and penalty, which has been availed by the petitioner on the basis of the invoices issued by both the non-existent and fictitious firm. The court observed that the power exercised under Section 67 is distinct, separate and independent of the power to be exercised by the competent authority under Section 71. The notice dated 21.01.2021 under Section 71 stood issued to the petitioner, but then, upon subjective satisfaction of having reason to believe, the officer authorized to conduct the search and seizure operations under Section 67, did do per law.
Held that:- The Hon’ble High Court directed the petitioner to fully cooperate and participate in the passing of the order by the competent authority, under Section 67 of the Act. If the petitioner chooses to prefer an appeal, challenging the very same order, it shall be open for them to do so, per law, within a period of four weeks. In such an eventuality, the issue of limitation shall not come in the way of decision of such appeal on merits.