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2022 (7) TMI 914 - HC - GSTValidity of show cause notice (SCN) - blocking credit ledger Availment of ineligible credit of input tax - fake invoices - bill trading/circular trading without physical movement of goods - mismatch of input tax credit - initiation of proceedings u/s 73(1) of the JGST Act and straightaway issuance of SCN, without issuing DRC-01A under Section 73(5) of the Act - HELD THAT:- The respondent No.4 had admitted that upon re-verification, it was found that e-way bills and computer generated measurement slip are true and genuine documents and the petitioner in the past has duly discharged its liability towards any mismatch in ITC. It is relevant to mention here that the said M/s. Jai Jawan Kastha Bhandar and M/s. Priti Enterprises with whom it was alleged that the petitioner was having transactions had filed writ application before this Court in M/S JAI JAWAN KASTHA BHANDAR, M/S PRITI ENTERPRISES, M/S NISHA ENTERPRISES, M/S MAHAVEER STEEL INDUSTRIES VERSUS THE STATE OF JHARKHAND. [2022 (7) TMI 814 - JHARKHAND HIGH COURT] for the respective two assessment years and those writ applications were partly allowed by this court and the respective impugned show cause notices, the adjudication orders and the summary of the order/demand notices in DRC-07 in the case of those petitioners were set aside and the matter was remitted back to the concerned authority/adjudicating officer to proceed with the matter in accordance with law vide order dated 21.06.2021. When the respondent-Department has duly accepted all the contentions of the petitioner and found the e-way bills and computer generated measurement slip to be correct and genuine documents and the sole reason for initiating the proceedings against this petitioner and passing of the impugned adjudication orders was due to his transaction with M/s Jai Jawan Kastha Bhandar and M/s. Priti Enterprises and when the cases of those assesses have been remanded to the adjudicating authority to pass fresh order in accordance with law; interest of justice demands that the case of this petitioner should also be remitted back to the adjudicating authority, inasmuch as, the sole cause of action does not survives. The application issued under section 73(1) and Rule 142(1) of the Jharkhand Goods and Services Taxes, (JGST) Act and also the adjudication orders issued under section 73(9) of the JGST Act and DRC-07 are hereby quashed and set-aside - application disposed off.
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