GEXCOM/SCN/GST/1106/2024-CGST-RANGE-4-DIV-3-COMMRTE-DAMAN

I/1815130/2024 Page 1 of 4

OFFICE OF THE SUPERINTENDENT,

CGST& CENTRAL EXCISE,
RANGE-IV, DIVISION-III, DAMAN,
DAMAN COMMISSIONERATE,
Ministry of Finance 3rd Floor, GST Bhawan, RCP
Central Board of Indirect Compound, Vapi -396191
Taxes & Customs Dist. Valsad, Gujarat.
E-mail: daman.range0304@gmail.com
By Speed Post/Email
F. No. GEXCOM/SCN/GST/1106/2024-CGST-RANGE-4-DIV-3-COMMRTE-DAMAN
Date: 25.01.2024
DIN:20240165TB000000E9DB
SCN No.02/GST/2023-24

Form GST DRC -01

(Rule 142 (1) of Central Goods & Service Tax Rules, 2017)

To
Shri Vinod Kumar Nishad (Legal Name),
M/s P P Plastics (Trade Name),
Ground Floor, Gala No. 5, House No. 71/4,
Near Shital Bar, Kachigam, Nani Daman,
Daman- 396210
GSTIN: 25AOXPN9634G1Z8
E-Mail: ppplasticsdaman@gmail.com
Mobile No.: 9067247759,7405409022

SHOW CAUSE CUM DEMAND NOTICE

(Issued under Section 73 (1) of the CGST Act, 2017 read with Section 20 of IGST Act, 2017
and Section 21 of UTGST Act-2017)

BRIEF FACTS OF THE CASE:

M/s PP Plastics (Trade Name), Shri Vinod Kumar Nishad (Legal Name), address of
principal place of business at Ground Floor, Gala No. 5, House No. 71/4, Near Shital Bar,
Kachigam, Nani Daman, Daman-396210 (hereinafter referred as “the Taxpayer” for sake of
brevity) having GSTIN-25AOXPN9634G1Z8 upto 31.07.2020 was engaged in supply of
Goods & Services. The GSTIN of the taxpayer is cancelled suo-moto with effect from
31.07.2020.

2. Whereas it appears that the taxpayer has filed FORM GSTR-3B return under Section
39 of CGST Act 2017, electronically through the common portal under Rule 61 of CGST
Rules 2017 for the tax period March 2019, August 2019 and March 2020 after due date of
taking ITC under section 16(4) of CGST Act 2017, for F. Y. 2018-19 i.e. 20.10.2019 and
F.Y. 2019-20 i.e. 20.10.2020.
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3. Whereas the eligibility and condition for taking input tax credit are defined under
section 16(4) of CGST Act, 2017, which is as under-

“(4) 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 thirtieth day of
November following the end of financial year to which such invoice or debit note pertains or
furnishing of the relevant annual return, whichever is earlier”
4. The cited provision of Section 16(4) prescribed that a registered person cannot take
ITC in respect of invoice or a debit note pertaining to a financial year after the due date for
furnishing the return under Section 39 for the month of September from the end of financial
year or furnishing of Annual return, whichever is earlier. In the present case, the taxpayer has
filed the returns beyond that date and hence, it appears that the ITC availed in their GSTR-3B
return filed for the month of March-2019 on 26.11.2019 and August, 2019 on 05.12.2020 &
March, 2020 on 31.12.2020 is inadmissible in violation of the Section 16(4) of CGST Act,
2017. The details of which are as under:

Date of Last date for Total ITC availed after the time limit
filing of filing of return prescribed under Section 16(4)
Tax period GSTR 3B for eligibility of
UTGS
and ITC ITC for F.Y. IGST CGST Total
T
availed 2018-19
March 2019 26.11.2019 20.10.2019 2055 0 0 2055
August 2019 05.12.2020 20.10.2020 2438 0 0 2438
March 2020 31.12.2020 20.10.2020 12806 0 0 12806
Total 17299 0 0 17299

5. Whereas it appears that the taxpayer has taken input tax credit in respect of the
invoices/debit notes for supply of goods or services or both after the due date of furnishing of
the return under section 39 of CGST Act, 2017 (i.e. the GSTR-3B return) for the month of
March 2019, August 2019 and March-2020. Therefore, they have contravened the provision
of Section 16(4) of the CGST Act, 2017, and such credit availed by them is incorrect and
inadmissible. Hence, it appears that the wrongly availed input tax credit of IGST totally
amounting to Rs.17,299/- is required to recovered from the taxpayer under Section 73(1) of
CGST Act, 2017, along with applicable interest as provided under Section 50 of the CGST
Act, 2017. Further, the taxpayer is also liable to pay penalty under Section 122(2) (a) of the
CGST Act, 2017 read with Section 73(9) of CGST Act, 2017.

6. Further, a verification process was initiated against the taxpayer through a letter F.
No. GEXCOM/TECH/MISC/93/2024-CGST-RANGE-4-DIV-3-COMMRT-DAMAN dated
04.01.2023 having DIN-20240165TB0000318129 requesting them to pay/reverse the
inadmissible credit availed by them along with applicable interest and penalty. The same was
sent through postal authority as well as e-mailed to ppplasticsdaman@gmail.com to the
taxpayer. However, the taxpayer has neither paid the tax nor complied with above letter
despite lapse of sufficient time.
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7. Now, therefore M/s PP Plastics (Trade Name), Shri Vinod Kumar Nishad (Legal
Name), address of principal place of business at Ground Floor, Gala No. 5, House No. 71/4,
Near Shital Bar, Kachigam, Nani Daman, Daman-396210 are hereby called upon to show
cause to the Superintendent, CGST & Central Excise, Range-IV, Division-III, Daman-
Commissionerate, having office at 3rd Floor, GST Bhavan, RCP Compound, Chala, Vapi-
396191 as to why:

(i) The Input Tax Credit (ITC) of IGST amounting to Rs.17,299/- wrongly availed
and utilized in violation of Rule 16(4) of CGST Act, 2017 should not be demanded
and recovered under Section 73(1) of CGST Act, 2017 read with Section 20 of
IGST Act, 2017.

(ii) The Interest at the appropriate rate on the amount ITC wrongly availed and utilized
at (i) above, should not be charged and recovered under Section 50 of CGST Act,
2017 read with Section 73(1) of CGST Act, 2017 read with Section 20 of IGST
Act, 2017.

(iii) Penalty should not be imposed upon you under Section 122(2) (a) of CGST Act,
2017 read with Section 73(9) of CGST Act, 2017 read with Section 20 of IGST
Act, 2017.

8. The taxpayer is hereby requested to produce at the time of showing cause, all the
evidences upon which they intend to rely in support of their defense. They are further
advised to indicate in their written explanation, as to whether they desire to be heard in
person before the case is adjudicated. If no mention is made about this in their written
explanation, it would be presumed that they do not desire to have personal hearing.

9. If no cause is shown against the action proposed to be taken within 30 days of the
receipt of this notice or if they fail to appear before the adjudicating authority when the case
is posted for hearing, the case would be decided on the basis of evidences available on record.

10. This Show Cause Notice is issued without any prejudice to any other action that may
be taken against the taxpayer under any provision of Central Goods & Service Tax Act,
2017 / IGST ACT, 2017 / UTGST Act, 2017 and rules framed there under or under the
provision of any other law for the time being in force.

11. Reliance for issue of this notice is based on the following documents and material
evidence:
(a) Form GSTR-3B return for the tax period March 2019, August 2019 and March
2020 as well as Electronic Credit Ledger for the tax period (Available with the
tax payer).

(b) Copy of letter F. No. F. No. GEXCOM/TECH/MISC/93/2024-CGST-

RANGE-4-DIV-3-COMMRT-DAMAN dated 04.01.2023 having DIN-
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20240165TB0000318129 issued by the Superintendent, CGST & Central

Excise, Range-IV, Division-III, Daman to the taxpayer (Copy available with
the taxpayer).

(Mukesh Kumar)
Superintendent
CGST & Central Excise,
Range-IV, Division-III, Daman.

Copy to:
The Assistant Commissioner, CGST & Central Excise, Division-III, Daman
Commissionerate for information please.